Jeera prices are on the upside due to export demand and lower arrivals at the terminal markets.
Stock to usage was lower in the last crop season leading to a firming up of domestic prices and lower exports. India is the world’s largest producer and consumer of jeera. While India consumes 75-80% of the commodity produced, the other producing countries export most of the product.
Fayaz Hudani, analyst from Kotak commodities, feels that the market is likely to firm up on export demand. “The peak season for jeera is over by April and any demand is likely to support the market. Reports of export demand have triggered the rally,” he added. Indian jeera exports have been higher for the past few years due to geopolitical tensions in Syria and Turkey.
Besides India, jeera seed is cultivated in Iran, Turkey and in Syria mainly for exports. The new crop in Syria and Turkey is harvested in August-September, so until then, Indian cumin seed will find a good market overseas. The harvest period in India for cumin starts around February-March. Spot prices on Monday evening at the NCDEX counter rose to R17,150 per quintal at the Unjha market due to technical buying and reports of confirmed export orders. Kotak reports jeera has been trading in a broad range of R14,500 and R17,000 per quintal since the last six-nine months.
Broking firm Angel Commodities reports jeera futures closed higher last week with over 4.3 % increase on anticipation of good export demand. “Industrial buyers have already sourced sufficient quantity for the domestic requirements but the export demand may pick up as prices have been going down since last one month,” Angel sources added.