Export demand lifts cumin seed prices

Cumin seed prices have firmed up by Rs 100 a quintal at the Unjha market last week mainly due to increased demand from Bangladesh, Singapore and West Asia. Prices, which had dipped to Rs 11,000 on August 25, have firmed up to Rs 11,100-11,800 by September 6.

The upcoming festive season has also played a major role in reigning in the prices traders said, adding that the rates will remain firm till sowing starts in December.

"The prices have firmed up because of increased export and domestic demand. Importers are turning towards India because of increased prices of cumin seeds in Syria and Turkey. Cumin seed prices in India are 10-15 per cent lower than in Syria and Turkey where the prices have shot up because of lower crop this year," said, Pankaj Thakkar, a Mumbai based trader and exporter of jeera.

Indian jeera prices in the international market is $3,000 per tonne, while the Turkish jeera is $3,600 per tonne. India is likely to face short supply of around 1 lakh bags (55 kg each).

"Currently India's jeera stock is around 8 lakh bags, out of which 2 lakh bags will be exported by December. Domestic consumption, on an average, remains between 6.5 and 7 lakh bags a year. Around one lakh bags will be used for fresh sowing in December. So, the prices will remain firm in the months to come because of one lakh bags shortage," Thakkar said, adding that the prices are likely to further firm up to 20 to 25 per cent during this month.

"Export demand of jeera from Bangladesh has gone up tremendously because of Ramadan," said, Pravin Patel, an Unjha based trader and president, Unjha Commodity Traders' Association. "This trend will last till December and market may witness correction of 30 to 35 per cent downward only to firm up between 60 and 65 per cent," said Chetan Rajani, a Rajkot based trader of jeera.