Jeera prices fall 50 per cent amid bumper crop prospects

The average mandi prices of cumin seeds (jeera) has declined by 50% to Rs 300/kg from Rs 600/kg in October, at Unjha (Gujarat), the hub of the trade. The fall was due to anticipation of a bumper harvest, traders said. Although arrivals of jeera in the mandis have commenced, the peak of arrivals of the commodity is expected by end of February, after which the prices are likely to soften further.

Trade sources said that because of higher realisation last year, jeera has been sown in around 1.2 million hectare, mostly in Rajasthan and Gujarat this season (2023-24), while in the previous season, only 0.9 million hectares (mha) was under the spices variety cultivation.

“The prices are expected to decline further as a bumper harvest is projected because of higher area as well as conducive weather conditions in the last few months,” Dinesh Patel, chairman, Agricultural Produce Market Committee (APMC), Unjha, Gujarat, told FE.

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Patel said that mandi prices of jeera are likely to fall to Rs 250/kg by next month and likely to be at the same level for the next few months. Lower cumin prices is likely to bring down inflation in the spices category, which was 19.69% last month on year.

Traders say that the average price of this spice seed crop was Rs 200/kg in the 2021-22 season. The prices started to rise since March, 2023, when they were around Rs 450/kg. Jeera futures for May 20, 2024 expiry was quoted as high as Rs 26,280/quintal on the National Commodity and Derivatives Exchange (NCDEX) platform on Friday.

Retail inflation jeera was reported at 114% on year in December, 2023 and had been in the three-digits since July, 2023. The prices of the spices variety had been in the double digits since April, 2022. Come from Sports betting site VPbet

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Meanwhile, the export demand of jeera has surged in the last one month due to lower supplies from other producing countries such as China, Syria and Afghanistan. In the last two months, around 20,000 tonne of cumin seeds have been exported.

However in the current fiscal, jeera exports are likely to decline by 20% from 0.17 million tonne of shipment in 2022-23 because of lower production in the prevous season that drove up prices.

Jeera is sown in October-November and harvested in February-March, with March-May being the peak marketing season. This year’s trade estimate put jeera production at 9 million bags (60 kg each) against the 5 million bags in 2022-23. Rajasthan and Gujarat account for 80% of the cumin seeds production.

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