Jeera prices up again due to good export demand

The Dollar Business Bureau

The prices of Jeera (cumin) is increasing during the peak season just like it did in the last season by touching an all-time high in May 2015. Jeera prices are again in an upward trend this year on National Commodities and Derivative Exchange (NCDEX) due to healthy export demand on the availability of good quality jeera.

Spot and futures have touched the lowest level in one year in February 2016, as reports predicted good harvest due to higher sowing acreage and favourable climatic conditions in most of the states where jeera is produced. But prices recovered over 32.4% to Rs.17,400 per quintal on NCDEX from Rs.13,150 per quintal during this period.

The leading jeera producing state in the country Gujarat has cultivated more than 10.8% area at 2,95,400 hectares this year against 2,66,700 hectares in previous year according to the rabi sowing report. The production of jeera got affected this time due to low  moisture in the soil during October 2015 and warm weather in the beginning of this year.

Jeera production increased 7% at 2.13 lakh tonnes according to third advance estimate of Gujarat this year against the predicted level of 1.97 lakh tonnes in revised fourth advance estimate for previous year.

Even in Rajasthan, the second top jeera producing state, the productivity may be less this year when compared to the previous year due to hot weather and low acreage. Jeera exports were lower till January 2016, against the same period previous year.

As per the data from Department of Commerce, jeera exports in first 11 months of this fiscal year is 71,983 tonnes against 1, 37,742 tonnes in the corresponding period last year. However, in the past three months the exporters were active due to improved quality supply and favourable weather conditions in Gujarat and Rajasthan.

Majority of jeera exports happened between the months of March and August in the past three years. So, the exports may further increase in the next few months. Data compiled by Agmarknet showed that jeera arrivals were down by 20% in the markets of Gujarat during the last two months.

Due to slow arrivals and healthy export demand, jeera prices may go up further this year. As per market experts, jeera prices may touch Rs 17,900-18,200 per quintal in the coming two months.