Jeera prices fall 11% in a month

Prices of cuminseed (jeera), the most usable spice variety, declined 11 per cent in the last one month due to the onset of new season arrivals.

The near-month contract on the National Commodity & Derivatives Exchange (NCDEX) fell from Rs 17,677 a quintal to Rs 15,710 a quintal in the last one month. Traders expect prices to move up after April 15, as the arrival season will come to an end.

The sentiment was also beaten in the spot market because of weak export demand for the commodity from the major buying markets, especially West Asia. Export demand was badly hit from these due to geopolitical uncertainty in the region.

Arrivals in the spot market have picked up due to the onset of the arrival season in Gujarat and Rajasthan.

Arrivals in the spot market range from 12,000 bags (1 bag = 60 kg) to 15,000 bags. On some days, arrivals have hit 30,000 bags as well.

“Some traders in Gujarat are holding back their stocks, as they expect prices of jeera to trade above Rs 3,000 per 20 kg. The reason these traders are holding back is because they received a good amount for mediocre quality crop in the beginning of March,” said Rakesh Jain, an Unjha-based jeera trader.

Many traders are also hedging their stock on NCDEX, as prices on futures are higher than that on spot market.

Currently, spot markets are closed due to the financial year closing, and will resume only on Saturday.

Although overall spices exports are higher by four per cent from April to February compared to last year, jeera exports show a decline of 38 per cent, data from the Spices Board of India showed.

“Jeera futures on NCDEX are expected to fall further and reach Rs 15,000 a quintal by mid-April,” said Faiyaz Hudani, senior research analyst with Kotak Commodity.