Due to bumper domestic production along with reports of crop failure in Turkey, Iran and Syria, the hub of country?s jeera (cumminseed) trade located at Unjha part of Mehsana district of Gujarat witnessing hectic activities since last few weeks.
According to traders, out of the total expected domestic raw jeera production of 2.5 million bags (60 kg a bag) during 2007-08, more than 1.2 million bags have already arrived in the Unjha market. Last year the domestic production of jeera was only 1.6 million bags.
Besides, more than 3 lakh bags of jeera have already been exported and another 3 lakh bags are to be exported over the next two months. “Besides India, there are hardly any carry forward stocks across the globe, the produce from Turkey, Iran and Syria will only hit the market only by July,” Manu Patel, president, Market Yard Merchant Association, Unjha told FE.
India has a carry forward stock of 2 lakh bags and the.domestic consumption of jeera is around 2.2 million bags.
Last year, the exports were only to the tune of 2 lakhs bag due to lower domestic production and higher global output. “The prices of jeera has been rising primarily due to export demands and the sound fundamentals,” Patel said.
Meanwhile, the jeera prices of May delivery rose by Rs 39 to Rs 10,751 a quintal with a volume of nearly 110 tonne on the National Commodity & Derivatives Exchange (NCDEX) at mid Wednesday and for July contract also traded up by Rs 93 at Rs 11,231 per quintal and recorded a volume of 3,303 tonne.
At Unjha market, the prices of a 20 kg bag is in the range of Rs 1,700 – Rs 2,000 at present in comparison to Rs 2,400 -Rs 2,500 ranged prevailed last year.
Traders at Unjha feel that arrivals would continue till next two months as farmers have been cautious supplying the entire produce due to price sensitivity.
“We are getting around 10,000 bags everyday and this trend would continue for the next few months till supplies from Turkey, Syria and Iran enters the world market,” another trader said.
Heavy rainfall in other jeera producing countries like Turkey, Syria and Iran during January – February this year is expected damage more than 40% of jeera production. However, the sowing has been done in these countries and harvesting would be done in June.
The jeera plant is grown as a rabi, or winter crop, in India, which is largest producer, consumer and exporter of jeera. Rajasthan and Gujarat contribute more than 90% of the jeera production. Banaskantha and Mehsana in Gujarat and Barmer, Jalore, Jodhpur and Nagaur in Rajasthan are the biggest producer of jeera.
India is biggest producer of jeera. The country produces 1 to 2 lakh tonne of cumin seeds annually. Syria is the next biggest producer with a production of 25000 tonne. Total area under cultivation is estimated to be more than 4 lakh hectares. India exports cumin seed to Bangladesh, Brazil, Japan, Malaysia, Nepal, Singapore, UAE, UK, US etc. Beside India, the consumption of cumin seed in rest of the world is in the range of 25,000 to 30,000 tonne.