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Jeera to dip on lack of demand

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Soumitra Trivedi Ahmedabad
Last Updated : Feb 05 2013 | 1:51 AM IST
Prices of cuminseed (jeera) are likely to fall further this week following a lack of demand in domestic and overseas markets. However, traders and exporters in Unjha are optimistic that prices will firm up within a fortnight.
 
Marketmen believe that stocks would exhaust within a week. Besides, the export demand, which is expected to pick up in a few days, would provide a boost to prices, raising them by Rs 200 to Rs 300 a quintal.
 
"Prices may further dip by Rs 50 to Rs 100 a quintal in the coming one or two weeks as the markets, especially in Saurashtra, are dominated by bearish sentiments. Traders want to clear off their stocks, fearing that the market would go down further and the sentiment would continue till mid-September," said, Babu Patel, president of the Unjha Cumin, Fennel and Isabgol Traders' Association.
 
Demand from the export market has come to a standstill following reports of China selling its stocks. Till date, India has exported around 3 lakh bags (of 55 kg each) to China.
 
Pravin Patel, another Unjha-based trader, echoed the views of Babubhai Patel on the bearish phase in the market. "However, it seems that prices will start rising some time after Janmashtami (September 4). The export demand will boost prices. Reports of a weak output in Turkey and Syria will rejuvenate the export market," he added.
 
Meanwhile, Chetan Rajani, a Rajkot-based trader termed the recent fluctuation in the commodity's prices unnatural and said there were chances of sentiments driving the markets further down.
 
Prices at the Unjha spot market, which were around Rs 12,350 a quintal as on August 25, further dipped to Rs 12,132 a quintal on August 27. About 16,401 tonnes of jeera was traded on August 25 on the National Commodity and Derivatives Exchange (NCDEX). Stocks at the NCDEX warehouses in Unjha rose to 4,948 tonnes on August 24 from 4,687 tonnes on August 18.
 
Traders believe that current stocks are less than the average stock of around 8 lakh bags. They added that low inventory, coupled with a rise in demand for jeera, would perk up prices in a few days.
 
The country produced around 12 lakh bags in 2006-07 and had a carry-forward stock of 5 lakh bags. The normal annual demand in both the domestic and export markets, is around 24 lakh bags.

 
 

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First Published: Aug 28 2007 | 12:00 AM IST

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