Rains in Syria lift jeera prices

Reports of rain in Syria and firm jeera rates there have helped in driving up spot as well as futures prices of the commodity here today. Syria is a leading producer of jeera after India.

At 1:15pm, all jeera contracts on the National Commodity and Derivatives Exchange were trading over 2 per cent up from their Wednesday's close. Spot prices were at Rs 13,268 per 100 kg, up Rs 88.

"The rains in Syria have been fairly well-spread, but the government has not done any assessment of the damage to the cumin crop," said an official of a Mumbai-based trading firm. Jeera is a sensitive crop and its yield could be easily impacted due to vagaries of the weather.

Currently, Syria is quoting $2,500 a tonne free-on-board for its machine-cleaned jeera. Prices have been on an upward course, rising from $1,900 a tonne a month ago, said an analyst at Motilal Oswal Commodities.

The gap between prices quoted in India and Syria have been narrowing on account of the uptrend in prices in the latter. Currently, domestic cumin prices are around $2,900-3,000 a tonne.

However, Indian importers have already entered into forward contracts in cumin seed with Syria at prices below the current rates, said the official of the trading firm. "It is now a question if Syria will honour these commitments, as prices there have risen," he said.

Syrian cumin prices do influence the trend in the local market here as India mainly imports from this southwest Asian country. Cumin seed produced in Turkey and Iran are of low grade and not preferred in India.

Although, Indian cumin seed is of superior quality with aroma, the country has lost out in the export market due to its high prices, said the official with the trading firm.