High prices, poor quality hampers jeera exports from Gujarat

The exports of Jeera (cumin seed) from Gujarat are likely to take a hit as prices soar by over 40 per cent as compared to last year. The escalation in prices is on account of a delayed arrival and poor quality of the seed following untimely rains in the key growing regions, Gujarat and Rajasthan, over past couple of months.

The prices had shot up to Rs 18,000 per quintal in the spot market at Unjha recently on fears of a possible fall in demand due to poor quality and high prices. The jeera production is pegged at around 25 lakh bags (a bag = 55 kg) this season, almost stable in comparison of last year. The total exports from Gujarat have been at around 8-9 lakh bags last year. But this year, the exports are feared to dip to less than five lakh bags.

 

"This year, jeera prices are up by around 40-45 per cent from the last year. This is driven by lower carryover stock, which is only 5 lakh bags this season against 15 lakh last year. This is causing prices to stay high, thereby affecting exports. But the exports are usually dependent on the crop situation in Turkey and Syria. So let's see what comes up from there after April. But this year, jeera exports will remain less than five lakh bags," said Arvindbhai Patel, former president, Chamber of Commerce Unjha APMC. According to market insiders, the exports of jeera during April 2010 - January 2011 has fallen by 36 per cent at 26,000 tonnes against 40,800 tonnes recorded in the corresponding period previous year.

According to market experts, there is a damage of around 10 per cent to the crop. "This year, we see a wastage level of about 20 per cent in the total crop, which was about 10 per cent more than last year. This is mainly because of untimely rains in past couple of months. Though the domestic demand is firm, there is a fall in exports due increased prices and poor quality. So far only 10 per cent of exports have taken place this year," said Gaurangbhai Patel, president, Unjha APMC, a largest jeera market in India. However, the lower quality seed is also exported to neighbouring countries like Bangladesh and Sri Lanka.

The arrivals have started pouring in the markets at Unjha APMC pushing the prices to go down. According to market sources, the prices are hovering anywhere between Rs 11,000 per quintal to Rs 16,500 per quintal at present. The arrivals at the Unjha APMC was recorded at around 15,000 to 17,000 bags (a bag = 55 kg) on Monday. Gujarat is the largest producer of the spice seed, with a total production exceeding 22 lakh bags. Saurashtra, Kutch and North Gujarat region are the key growing areas in the State. Last year, Rajasthan contributed about 5-7 lakh bags with cultivation mainly focused in southern part of the state.