Weak economy, higher purchasing last year may decrease jeera exports from India

Country's export may reduce by 45 per cent this year

Jeera (cumin seeds) exports from India are likely to move down as demand from international markets have tapered down by 50 per cent due to weak economic sentiments. As per trade sources, India may not export more than 75,000-85,000 tonnes during 2015-16.

Depreciation of the Chinese Yuan and South American currencies affected the global economy. Moreover, some traders of rice and spices have been defaulted this year in Dubai, which has further decreased the demand for jeera from India.

Bhaskar Shah, chairman of Indian Spice and Foodstuff Exporters' Association (ISFEA) said, "The financial condition is not good in the international market, and has restricted the demand for Indian jeera this year. On top of this, there are some quality issues with jeera, as there have been complaints of adulteration that diminish trust."

In the first half of the current financial year, the country exported about 43,000 tonnes of jeera as against 80,000 tonnes in corresponding period last year. India had exported about 155,000 tonnes in 2014-15 while it is expected to be somewhere around 75,000-85,000 tonnes this fiscal, down by about 45 per cent.

Shah who is also the vice chairman of the Spices Board said, "In the present scenario, Indian jeera exports are likely to be about 85,000 tonnes for the year 2015-16."

"Exports of jeera have declined during the last six months, as almost all major buyers were aware that the 2015 crop in India will be much lower than the last three years. Everyone bought huge quantities during February-March, 2015", said Yogesh Mehta, managing director of Spicexim.

A deficit monsoon in 2014, coupled with unseasonal showers ahead of the jeera harvest, led to a 25-27 per cent dip in Jeera production in 2014-15 over last year. According to trade sources, domestic jeera production is projected at 250,000 tonnes. Production has been increasing during the past four years.