Overseas demand may push jeera prices up by 10%

Emerging demand from neighbouring countries including Bangladesh and Pakistan is likely to push cuminseed (jeera) prices up by at least 10 per cent this month.

Traders believe that orders have started increasing from Bangladesh in addition to the regular demand from developed countries including the US and the EU. Pakistan demand is set to open by the end of this month. Bangladesh and Pakistan constitute five per cent and three per cent of India’s total nearly 55,000 tonnes of annual jeera exports respectively.

But, exports to India’s neighbouring countries are set to rise this year once supply from competing countries including Syria, Turkey and Iran exhaust, which is expected soon.

In the spot Unjha (Gujarat) market, India’s largest selling market yard, jeera prices softened on Tuesday by Rs 100 to close the day at Rs 2,600 per bag of 60 kg.

“Traders who built their inventories, are selling jeera to raise fund for new trade. The traditional seasonal demand has also not yet started. But, the festival demand is expected to start by the end of this week which will raise prices up a bit,” said Praveen Patel, an Unjha based trader.

On the NCDEX, the jeera contract for delivery in September, however, rose 4.41 per cent to trade at Rs 13,822 a quintal after initial decline early this month. The contract hit an all-time high of Rs 15,048 a quintal on July 22 amid crop failure reports in Syria.