Cumin seed (jeera) futures prices are seen correcting downward next week on heavy crop arrivals, analysts and traders said. | |
| Along with the domestic produce, imports are also expected from Syria. On the National Commodity and Derivatives Exchange, futures for March and April delivery have risen by 27 per cent in the last one month on fears of crop damage due to heavy rains in the growing areas and firm demand in spot markets. The May contract, trading in which commenced on February 10, has risen 24 per cent so far. "Cumin seed futures would remain bullish till Saturday. |
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| But next week, we could see the commodity entering a correction phase," said an analyst at India Infoline. Jeera prices were expected to enter into a bearish phase mid-February but heavy rains in Rajasthan and Gujarat gave rise to fears about crop damage. Daily new crop arrivals in Unjha, Gujarat, a key spot market, have been rising over the past few days. In last couple of days, daily average arrivals have risen to 18,000 bags (1 bag=55 kg), according to Faiyaz Hudani, analyst, Kotak Commodities. |
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| Arrivals from Rajasthan will commence after Holi, which falls on March 4, traders said. Gujarat and Rajasthan are the leading producers of cumin seed. Overall, supplies are seen rising with imports of the commodity from Syria entering the markets this month, Hudani said. |
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| "About 3,000 tonne of cumin seed is being imported. Some stocks have already arrived at the ports," Hudani said. An international spice-trading house based in Kochi confirmed that it has imported two containers of 14 tonne of each. |
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| "We do import a small quantity of jeera every year but our imports are largely dependent on the price offered by the exporting countries and domestic rates," said an official of the trading company. |
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| This time around the prices offered by Syria, one of the largest producer in the world, were lower than those in Indian markets, prompting the company to import. |
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| Heavy inflow of jeera is also expected to coincide with steady offtake in spot markets. Kotak Commodities has asked market participants to book profits in March jeera contract. |
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| Weather in Rajasthan is expected to return to normalcy in next few days, helping erase fears of crop damage, analysts said. Jeera prices were expected to come under correction on high inflow of crop arrivals but heavy rains in Rajasthan and Gujarat prompted traders to build long positions. |
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| Jeera being a delicate crop is susceptible to vagaries of weather. "After a short spell of dry weather, rains have resumed over Rajasthan. |
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| Last night Jodhpur and Bikaner received heavy rains prompting traders to go bullish on jeera," said the India Infoline analyst. |
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| According to her, March jeera could touch Rs 12,000 a quintal in the next couple of sessions before edging down. |
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