Rising export demand and holding of stocks by farmers has pushed up jeera (cumminseed) prices sharply in the country?s trade hub located at Unjha in Gujarat.
According to traders, the price of a 20 kg bag of jeera has increased from Rs 1,500 in April 2008 to Rs 1,900, currently. Last year due to crop failure, the price of jeera was in the range of Rs 2,400 to Rs 2,500.
Out of the total expected domestic raw jeera production of 2.5 million bags (60 kg a bag) during 2008-09, more than 1.5 million bags (60%) have already arrived in the Unjha market. Last year the domestic production of jeera was only 1.6 million bags.
?We have only carry forwarded stock across the country. The produce from Turkey has just arrived while the produce from Syria is yet to hit the global market,? Manu Patel, president, Market Yard Merchant Association, Unjha told FE.
The daily arrival of jeera at Unjha is in the range of 8,000 to 10,000 bags. Traders said that the farmers have been cautious supplying the entire produce due to price sensitivity.
Traders at Unjha said that the arrival of jeera would continue till November 2008. India has a carry forward stock of 2 lakh bags and the domestic consumption of jeera is around 2 million bags.
The country has already exported 3.5 lakh bags of jeera and the export prices are in the range of Rs 1,800 – Rs 1,900 per 20 kg bags. ?The prices of Syrian jeera is much higher than us, so our exports are definitely going to increase further in the coming months,? another trader added.
Heavy rainfall in other jeera producing countries like Turkey, Syria and Iran during January – February this year is expected to damage more than 40% of their jeera production. However, the sowing has been done in these countries and harvesting would be done in June. In India, 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 producers of jeera.
India is the biggest producer of jeera. The country produces one to two lakh tonne of cumin seeds annually. Syria is the next biggest producer with a production of 25,000 tonne. Total area under cultivation is estimated to be more than four lakh hectare. 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.