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Amid falling arrivals, the prices of jeera (cumin seeds) are set to rise. This year, production of the commodity was low, and this was exerting additional pressure on prices, traders said.
Early this week, jeera was traded at Rs 13,400-13,500 a quintal in the Unjha spot markets. Arrivals at key markets in Gujarat have seen a decline---from 79 tonnes in March to 23 tonnes in May and 13 tonnes in July. "Arrivals are falling. We see prices strengthening further, as the stock is less compared to last year due to reduced production," said a jeera trader in Unjha.
An Emkay Research report said the rise in domestic and export demand ahead of the festive season was also likely to boost prices. "Export demand is expected to remain firm till mid-December, as during Christmas season, the buying remains subdued. Good export demand from Singapore, Europe, Dubai and Bangladesh is being reported."
Insiders said a low carry-over stock was also fuelling the rise in prices. "There is less carry-over stock. Also, this has been one of the lowest production years in past three years. So, prices are likely to remain firm," said a trader source at Unjha. According to data provided by the Spice Board of India, jeera production stood at 3,94,328 tonnes in 2012-13, 4,61,160 tonnes in 2011-12 and 4,03,744 tonnes in 2010-11.
In 2012-13, India exported a whopping 79,900 tonnes of jeera, 78 per cent more than the 45,000 tonnes exported in 2011-12. Jeera exports are likely to remain high this year, too, owing to a strong dollar and rifts and disruptions in Syria and Turkey, the major global producers.
“The full-scale civil war between the regime and the opposition has led to complete isolation of Syria, in terms of beneficial trade. Expectations of lower production in Turkey and the supply halt from Syria would make India the sole major exporter of jeera,” the Emkay report said.
Early this week, jeera was traded at Rs 13,400-13,500 a quintal in the Unjha spot markets. Arrivals at key markets in Gujarat have seen a decline---from 79 tonnes in March to 23 tonnes in May and 13 tonnes in July. "Arrivals are falling. We see prices strengthening further, as the stock is less compared to last year due to reduced production," said a jeera trader in Unjha.
An Emkay Research report said the rise in domestic and export demand ahead of the festive season was also likely to boost prices. "Export demand is expected to remain firm till mid-December, as during Christmas season, the buying remains subdued. Good export demand from Singapore, Europe, Dubai and Bangladesh is being reported."
Insiders said a low carry-over stock was also fuelling the rise in prices. "There is less carry-over stock. Also, this has been one of the lowest production years in past three years. So, prices are likely to remain firm," said a trader source at Unjha. According to data provided by the Spice Board of India, jeera production stood at 3,94,328 tonnes in 2012-13, 4,61,160 tonnes in 2011-12 and 4,03,744 tonnes in 2010-11.
In 2012-13, India exported a whopping 79,900 tonnes of jeera, 78 per cent more than the 45,000 tonnes exported in 2011-12. Jeera exports are likely to remain high this year, too, owing to a strong dollar and rifts and disruptions in Syria and Turkey, the major global producers.
“The full-scale civil war between the regime and the opposition has led to complete isolation of Syria, in terms of beneficial trade. Expectations of lower production in Turkey and the supply halt from Syria would make India the sole major exporter of jeera,” the Emkay report said.
Factors that could have an impact on jeera prices in the coming days include the possibility of the National Spot Exchange releasing stocks to clear dues to investors. An above-average monsoon in Gujarat may also affect jeera quality and, therefore, prices.
