With reports of less output in jeera (cumin seed) producing countries such as Syria, Turkey and Iran, price of this key ingredient has started rising in Unjha, the hub of country?s jeera trade, during the last few weeks.
Traders said jeera stocks of around 9 lakh bags (55 kg per bag) in the country would last till this year-end and the new crop is expected to enter the market by end of January next year. The prices at present have risen in the range of Rs 2000 ? Rs 2200 per bag (20 kg a bag) from Rs 1800- Rs 2000 per bag two months back.
?The prices are expected to rise by Rs 200 ? Rs 300 per bag during next one month,? Manu Patel, president, Market Yard Merchant Association, Unjha, told FE.
Patel said unconfirmed reports that production in Turkey, Syria and Iran is expected to be in the range of 30,000 ? 40,000 tonne is pushing up prices in India.
However traders at Unjha are waiting for the clearer picture from these countries, which would determine jeera prices. ?The availability of jeera in these countries would determine the prices in the domestic market in August,? another trader said.
Farmers are bringing in 5000 – 6000 bags every day to the market and are likely to continue over the next few months. There is a need of around 1.15 ? 2 lakh bags each month for meeting domestic demand.
Due to warm weather in January and February early this year in two key jeera producing states of Rajasthan and Gujarat, production this year is expected to go down to around 2.3 million bags as against 2.8 million bags achieved last year. Meanwhile, Jeera prices at NCDEX for August 2009 contract closed at Rs 11,7001 per quintal, up by Rs 19 per quintal as compared to Tuesday?s close of Rs 11,682 per quintal. Analysts say that Jeera prices are going to rise as the festive season in India approaches and the new crop is expected to hit the market only by end of January or early February 2010.
According to Spices Board of India, earnings from jeera exports have gone up from Rs 201 crore during 2006-07 to Rs 291 crore during 2007-08 and in quantity terms, exports has gone up from 26,000 tonne during 2006-07 to 28,000 tonne during 2007-08. India is the largest producer, consumer and exporter of jeera. The country produces around 2 lakh tonne of jeera. Rajasthan and Gujarat contribute more than 90% of the total production. Jeera plant is grown as a rabi, or winter crop. Syria is the next biggest producer with a production of 30,000 tonne.
