Higher acreage, coupled with healthy crop condition across all major growing regions, are likely to fetch 40 per cent additional jeera output this year.
This year, production of the commodity is estimated to be 3.5-3.8 million bags (1 bag = 55 kg) as compared to 2.5 million bags last year. Data compiled by the Gujarat agricultural department show that overall sowing area has jumped 56 per cent to 113,100 hectares (ha) so far this year, as compared to 49,764 ha last year.
“Farmers’ realisation from this spice jumped 13 per cent in the last crop growing period between October 2010-October 2011, which prompted farmers to bring more area under jeera,” said a leading city-based trader.
The price of jeera at the National Commodity & Derivatives Exchange (NCDEX) surged to Rs 15,274 a quintal on October 1, 2010, from Rs 13,518 a quintal on the same day last year.
Analysts believe farmers were enthusiastic with the returns fetched last year. Hence, they sowed more.
Sowing of jeera begins in early October and continues until the first week of December for harvesting in February-March. Gujarat is the largest producer, consisting of 70 per cent of overall output. Rajasthan and Andhra Pradesh are other large producers of this spice.
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“In 2005, farmers got Rs 60 for a kg of jeera, and now get Rs 120 for a kg. Obviously, they will grow what gives them better returns,” said Bhaskar Shah, a Mumbai-based jeera trader.
Since 2009, prices have surged 34.6 per cent on the back of good export demand in the last two years. Also, good rain in crop growing areas has caused acreage to increase under the spice. Jeera requires sufficient moisture in the soil during October and November and the weather conditions have been favourable.
Arrivals in the spot market of Unjha, Gujarat, are steady and stood at 3,000-4,000 bags.
Last year, the crop was destroyed in India’s two biggest export competitors, Syria and Turkey, causing substantial increase in offtake from foreign buyers. This year, in contrast, exports have not been good so far. The shipment is expected to pick up once the fresh crop hits the market in February.
Jeera exports from April till September are 15 per cent lower than last year. During this period, 16,000 tonnes have been exported, compared to 18,800 tonnes during the same time last year.
“Fresh arrivals will hit the market only by mid-February, but the initial arrivals will have heavy moisture content. Arrivals that will come into the market in March will be of good quality, as the moisture content will be lower,” said a jeera trader.