A high domestic crop and an increase in overseas demand have sent jeera (cummin seed) prices soaring for the last three months at markets in Unjha, Guarat. According to traders, the price of a 20-kg bag of jeera has risen from Rs 1,500 in April to Rs 2,450, a hefty hike of more than 63%. In 2007, crop failure pushed jeera prices to hover at the current range of Rs 2,400 – Rs 2,500.
?We expected jeera prices to fall in the international market once produce from Turkey and Syria arrived. But the produce from these two countries has been quite small,? Manu Patel, president, Market Yard Merchant Association, Unjha, told FE. This effectively implies that only India has ample stocks of jeera.
Out of the total expected domestic raw jeera produce of 2.8 million bags (55 kg a bag) during 2008-9, close to 2.3 million bags have already arrived in Unjha. The country also had a carry forward stock of 2 lakh bags from 2007, when domestic produce was only 1.6 million bags.
The daily arrival of jeera at Unjha has slowed down to 3 – 4 thousand bags while there is a demand to the tune of 5 – 6 thousand bags. Traders said that farmers have been cautious in supplying the entire produce due to price sensitivity.
Patel said that the arrivals of jeera would continue till September as farmers are still holding on to around 15% of the produce. Domestic consumption of jeera is around 2.2 million bags.
India has already exported 3.5 lakh bags of jeera and export prices are in the range of Rs 1,900 – Rs 2,000 per 20 kg bag. Jeera is grown as a rabi or winter crop in India, which is largest producer, consumer and exporter.
Rajasthan and Gujarat contribute more than 90% of the produce. Syria is the next biggest producer at 25,000 tonne.