Tamarind Prices Explained

Tamarind prices maintain their low levels despite the high prices of kitchen goods this year and the foreign trade partners’ proposal of buying 500 tons of fresh tamarind every month. Its prices move in the range between $65-$100 per viss depending on the different varieties and quality.  As a result, Malaysian traders who keep inventory in hand scramble to sell their stocks to keep profitability.

Why are tamarind prices fluctuating?

1. Oversupply of Tamarind

When inventory is abundant, sellers usually lower their prices to clear it which lowers the value of the goods. For example, the price of tamarind in Calabarzon, Philippines decreased from $0.23 per kg to $0.18 per kg, presumably as a result of excess supply or declining demand. On the other hand, low supply or high demand frequently results in higher tamarind prices.

2. Demand from Various Industries

Generally, market dynamics come from various industries’ shifting demand, which results in tamarind price fluctuations. For instance, Bangladesh, India, Thailand, Mexico, and the United States are among the nations that eat tamarind-derived juice, pulp, powder, chutney, pickles, sauces, sweets, and tamarind kernel powder. Overall, the broad range of processed tamarind items that show its versatility, fuels substantial demand in both domestic and international markets

3. Weather Conditions

Weather is an important factor in its production as unfavorable conditions lessen the crop’s yield and quality, driving up tamarind demand and costs. Normally, prices tend to decrease throughout January when the harvesting takes place; however, during holidays,  prices tend to rise due to increased demand, particularly for dry snacks.

4. Trade Policies

Trade regulations imposed by different nations might affect the price of the fruit. For instance, India implemented a 50% import duty on tamarind from Thailand (the world’s second-largest tamarind producer) in an attempt to protect its indigenous sector and farmers.

As a result, its domestic prices surged which highly affected Indian consumers and processors. Conversely, it impacted Thai tamarind’s export competitiveness in other international markets.

Which variables impact the price of tamarind?

• Oversupply of Tamarind
• Demand from Various Industries
• Weather Conditions
• Trade Policies
• Geographical Factors
• Trade Policies

Where does tamarind come from?

The tamarind tree is a leguminous species that originated in tropical Africa and has now spread to Asia.

Originally, it was native to tropical America but widely utilized in Asia due to its acidic flavor which suits the varied taste of Asian cuisine. There are several types of tamarind and each has special qualities and uses.

1. Sweet Tamarind – This variety of tamarind is well known and is frequently grown for its pulp. Additionally, it has a sweet and tart flavor which finds extensive use in culinary like making sauce and candies.

2. Sour Tamarind – While all tamarinds have a sour flavor, some are more known for their unique acidity. These kinds are often used in recipes that call for a stronger sour or acidic taste.

3. Makham Pom – Known as the Vietnamese tamarind or black tamarind, it produces pods with a pulp that is both sweet and sour. Also, it is used in traditional medicine and cooking throughout Southeast Asia.

4. Indian Date – Known for its small size and delicious pulp, Indians mostly use this as a spice in their cooking as it offers a softer flavor when compared to several other varieties.

5. Velvet Tamarind – It is native to West Africa. Its pulp is soft and tarty which is usually eaten raw or added to traditional meals.

6. Wild Tamarind – This variety produces pods with an acidic pulp that is pleasant. Additionally, it offers distinct flavor qualities and is occasionally used in regional cuisines and traditional medicine.

7. Maringa Tamarind – It grows in several tropical locations. The pulp of this plant has a tart flavor and is used in traditional medicine as well as cooking.

What are the uses of tamarind?

Tamarind enhances flavor and has health-promoting qualities like antibacterial, antioxidant, antifungal, and antiseptic qualities. Moreover, it is a versatile plant that is widely used in the food and cosmetic industries. Its moisturizing and bleaching properties are often used in cosmetics. Some of the main uses of tamarind are:

1. Food Industry – Tamarind pulp is frequently used as a flavoring, preservative, and spice in drinks, sauces, and sweets. Additionally, its pectin is used to preserve fruits without the addition of acids. Furthermore, tamarind seeds can be ground and roasted to replace coffee.

2. Textile Industry – Its gum is used to thicken fabrics when they are dyed and printed. Leather and fabric dyes are made from the tannins and dyeing agents found in tamarind seed coats.

3. Agriculture – Tamarind seed cake is a good soil conditioner and fertilizer. Additionally, its leaves and flowers are used as fodder for animals.

4. Paper Industry – The cellulose-rich tamarind seed husk turns out to be a useful resource for making paper. Also, its gum is useful as a printing paste or as a glue for paper.

5. Explosives Industry – Tamarind gum acts as a thickening agent for explosives and fireworks.

What is the future price of tamarind?

Consumer preferences for healthier food products are driving up demand and prices for tamarind extract globally.

For example, the growing veganism trend in the U.S. combined with growing concerns about immunological and nutritional deficits is expected to propel the tamarind extract market in North America and encourage its use in the pharmaceutical industry.

Furthermore, tamarind extract is frequently included in hair and skin care products due to the region’s growing demand for organic cosmetics. Therefore, the price of tamarind will be $0.65 per kilogram in 2028 and its market value is expected to reach $1628.9 million by 2032 at a CAGR of 5.8%.