Jeera prices up by 10% despite fresh arrivals

Prices of the spice moved up on speculation of lower yield due to crop damage, and fresh export enquiries

Jeera (cumin seed) prices have gained by about 10% in a week despite fresh arrivals, especially in major producing states like Gujarat and Rajasthan.

The commodity's prices moved up by Rs 250-300 per 20 kg to Rs 2,250-2,750 per 20 kg in different regions. According to industry sources and traders, prices moved up on speculation of lower yield and fresh export enquiries.

"New crop is arriving in small quantity in Gujarat and Rajasthan, though the same is likely to pick up soon. Prices gained as there were some speculations of crop damage," said Gaurang Patel, chairman of Agricultural Produce Market Committee (APMC) Unjha.

On the other hand, jeera prices increased in futures by 15% over the past 10 days. At the National Commodity and Derivatives Exchange (NCDEX) jeera prices stood at Rs 14,980 per quintal on Friday as against Rs 13,010 per quintal 10 days ago.

In May 2015, jeera prices had increased by over 25 to hit a historic high of Rs 18,960 per quintal in futures market. Spot price was at Rs 3,950 per 20 kg at that time. Prices had risen then on the back of good export demand and lower production in India.

According to experts and traders, jeera arrival this year has been a bit late in Gujarat as the weather was quite hot at the early stage of sowing which delayed planting. However, overall acreage of jeera sowing has increased in the state and crop conditions have so far been normal in both Rajasthan and Gujarat. Jeera sowing saw a rise of 10.8% at 295,400 hectares in Gujarat, compared to 266,700 hectares last year. In Rajasthan, sowing of jeera was done on 160,000 hectares as against 178,000 hectares.

Quantity of new jeera arrivals have been in the range of 1,500 bags (a bag of 40 kg) in Gujarat and close to 300 bags in Rajasthan.

"Prices got support on the expectation of lower yield and fresh export enquiries in Gujarat, though arrival of new crop capped the gains," said Ajay Kumar Kedia of Kedia Commodity Comtrade Private Limited.

According to Kedia, prices for the short term look firm to test around Rs 15,200-15,500 levels due to delay in new season crop which will come only in March. Add to that, a weaker rupee has also been beneficial for the exporters.

Traders are expecting some more uptrend in the price till the arrivals begin in a full-fledged manner.

"Once supply of new crop begins in full force, prices of the commodity will reduce. Full-fledged arrival will be reported from March. Before that, prices may go up slowly. However, price trends also depend on demand," said a Rajkot based jeera trader.

 

 

Traders estimate that jeera exports are likely to remain at around 90,000 tonnes during the current fiscal down from 155,000 tonnes in the previous year.

 

 

...Ends