Jeera prices may rise 25% on low output, high demand

The prices of cuminseed (jeera) are likely to rise 25 per cent in the next two months on lower output estimates and rising exports demand. In Indore, the best quality jeera is quoting at Rs 14,800 a quintal while the low quality is selling at Rs 11,800. Traders expect this to go up to Rs 30,000 a quintal by Diwali.

Arrivals have dried up in Indore due to non-acceptance of poor quality jeera delivered by traders. Today, the arrivals reduced to nil from 30-40 bags (of 100 kg each) a day a week ago.

In Unjha, arrivals were down to 2,000 bags (of 60 kg each) from the normal 5000 bags, indicating tight supply conditions amidst expected exports demand. Fair average quality jeera in Unjha is quoting at Rs 2,100 per 20 kg, more than double from the last year's level of Rs 1,000.

One of the main reasons for the spurt in prices is heavy rains in the Gulf countries, where the crop has largely been damaged. On an average, the cumin seeds production in the Gulf countries is about 60,000 tonnes a year, but this year it will not go beyond the level of 35,000-40,000 tonnes.

Jeera from Syria and Turkey is selling in the international market at $3,200-3,300 a tonne, up 10-14% from the previous level of $2,800-3,000.