Jeera (cumin seeds) prices are likely to take a dip following an increase in moisture content due to heavy rains in central Gujarat over the last few days. Jeera producing areas like Banaskantha, Sabarkantha, Mehsana and Patan in central Gujarat have been affected by rains, increasing the moisture content. | |
| According to traders and jeera experts, the moisture in the stock is likely to increase up to 5 per cent and may bring down the prices by up to 4 to 5 per cent in the spot markets. This may force traders to turn towards the futures market. |
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| Talking to Business Standard, Ashwin Patel, an Unjha-based jeera trader, said, "At present, the cumin seed prices are between Rs 2,000 to 2,400 per 20 kg. The moisture content is likely to increase in the stock and bring down the prices by 4 to 5 per cent in the coming days." |
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| On the stock situation in the market he said, "There is sufficient stock available in the market. As much as 7 to 8 lakh bags (each of 60 kg) of cumin seeds are stocked with traders and farmers. The increase in moisture content will affect the prices slightly." However, he added that warehouses that are full would not be affected much by moisture, and only the ones that have space would be affected by it. |
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| The dip in prices will affect central areas which grow cumin seeds and the Unjha and Mehsana agriculture produce markets. However, cumin growing areas in Saurashtra have kept away from the crop last season. These include Junagadh, Jamnagar, Rajkot, Bhavnagar, Amreli and Surendranagar. |
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| Speaking on the issue Babubhai Patel, president, Unjha Traders Association, Unjha, said, "The prices will surely have a negative impact of up to five per cent. This will not last long as cumin seed is a commodity with longer shelf life. But the spot market will face a dip in prices. If the moisture impact is larger than expected, then the exporters may turn more towards the futures market." |
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| The market is, currently, stable at Rs 2,000 to 2,400 per 20 kg as the demand was slack, he said, adding that when the markets open the prices were likely to touch Rs 3000 per 20 kg. The demand from states like Uttar Pradesh, Bihar and West Bengal could open up the market in the coming days, he said. |
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| This year, the state's cumin seed production touched 30,000 tonnes, which was almost 50 per cent less than the previous year as cotton, wheat and groundnut cultivation during the last winter had affected the cumin output. |
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| During the 2005 winter, Gujarat produced 60,000 tonnes while Rajasthan's cumin seeds output stood at around 45,000 tonnes. Banaskantha and Mehsana in Gujarat and Barmer, Jalore, Jodhpur and Nagaur in Rajasthan are the cumin seed growing centres in the country. The country produces around 1,32,000 tonnes of jeera a year. |
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