Low production, high export demand raises price of cumin

The prices of cumin spice have shot up due to the less production and high demand in foreign countries, merchants said Gujarat.

The merchants predict a further hike in cumin prices in the coming days as they foresee a sharp drop in production.

They said the prices could increase by another ten percent.

The crop was severely affected due to scant rainfall in the western belt of the country.

The increase in demand of the spice in countries like the U.S, U.K. and Singapore also led to rise in prices.

"The reason behind the rise in prices is because we have exported more than five lakh sacks of cumin and fresh stock is still to come. The fresh stocks will also be less due to shortage of water. Right now the price of a 20 kg sack is around 2,700-2,850 rupees. We are expecting the price to cross 3,000 rupees," said a merchant, Hitesh Busa.

While consumers are net losers who are forced to pay much higher prices, farmers are happy that the low production has been offset by good prices.

"Due to water scarcity, we could not grow cumin in large areas. We are expecting the prices to cross 3,000 rupees," said a farmer, Kishor Dabhi.

In 2014, India exported about 1,00,000 tonne of cumin as compared to 80,000 tonne in 2013.

The strong export demand of cumin has led to increase in snowing of the crop in the country. Gujarat is the main cumin producing state in the country.

Cumin has a lot of uses, in seasonal dishes, in medicines. It acts as an excellent digestive and stomach disorder settler and is also a skin friendly herd and reduces itching.