Amidst reports of crop damages due to unseasonal rains in December last year in jeera (cummin-seed)-growing regions of Rajasthan and Gujarat, wholesale prices at Unjha, the biggest market in the country, have reached a record high and expected to rise further during the next few months.
According to a trader from Unjha, prices have risen to a high of R3,500 for a 20-kg bag from R2,600 just two months back.
?Due to decrease in supplies, prices are even expected to reach R4,000 per 20 kg bag during the next few months as demand rises in the coming months,? Manu Patel, president, Market Yard Merchant Association, Unjha told FE.
Although the new crop is yet to arrive in the market, depleting stocks and concern that there would be decline in production are pushing up the prices in Unjha.
Another factor, Patel said, which would push up prices, as due to rise income because of high cotton prices, farmers in jeera growing regions would be also holding on to the stocks for getting a higher return.
At present, farmers are bringing in 10,000 bags daily to Unjha against 20,000 bags a month back. ?Farmers are keeping a watch on prices before bringing in produce to the market,? another trader said.
Meanwhile, At the National Commodity and Derivatives Exchange, jeera for April contract fell by R100, or 0.57%, to R17,538 per quintal. Similarly, March futures contracts of the spice fell by R96, or 0.56%, to R17,085 per quintal.
Another trader from Unjha said the total production this year is expected to be around 26 lakh bags (60 kg bag) against 29 lakh bags reported last year. After meeting the domestic demand and exports, during 2011 the carry forward stocks is also expected to lower at 5 lakh bag against 12 lakh bag from the 2010.
Patel said that exports demands would be also as crop in other jeera producing countries such as Syria and Turkey have not been ?good?.
According to Spices Board of India, the earnings from jeera exports have gone up from R201 crore during 2006-7 to R544 crore during 2008-09 and quantity terms, the exports has gone up from 26,000 tonne during 2006-7 to 52,550 tonne during 2008-09.
India is the largest producer, consumer and exporter of jeera. Combinely, Rajasthan and Gujarat contribute more than 90% of the total production. The jeera plant is grown as a rabi, or winter crop in the country. The jeera crop needs cooler climate during December?January for better yield.