Unjha’s spice market, one of India’s biggest hubs for cumin and other seed spices, has yet to recover from the disruption caused by the West Asia conflict. Months after the immediate impact of the conflict eased, the business remains weak, and a turnaround appears to be a distant horizon.
Higher container freight costs following the geopolitical tensions and a bumper crop of cumin in China have reduced the need for Indian cumin, which is the mainstay of Unjha’s trade.
According to market information, preliminary estimates put cumin exports at around 44,000 tonnes in Q1 FY27, compared with 59,247.76 tonnes in Q1 FY26, marking a decline of more than 15,000 tonnes.
Overall exports of spices are estimated to have declined by around 11-12% during the quarter, according to data from the Spices Board of India. Unjha reportedly accounts for around 80% of the country’s cumin exports, according to the market.
“It is difficult to tell when exports would look up,” Dinesh Patel, chairman of the Agriculture Produce Market Committee in Unjha, told FE. “The cumin is sold by now. However, we have around 30 lakh sacks, each containing 60 kilograms of cumin,” he said.
Unjha exports cumin, fennel, and other spices across the world, especially to Dubai, the Middle East, Europe, and the USA. “Sending containers has become a costly proposition. Moreover, there are many ships waiting to come back from Hormuz to India. The numbers cannot be ascertained,” Patel said.
Skyrocketing Freight
Shibu Daniel, an exporter, doubted if the numbers would grow in FY27-Q2. The freight charges that were $250-400 pre-war are now between $2,500 and $4,000 to send the containers to the Port of Jebel Ali in Dubai. However, since it is a risky proposition, the containers first go to Korfakkan Port in the UAE, and from there they go to the Port of Jebel Ali, and the additional cost for it comes to around $1,600, he said. Also, it takes about 20 days for clearing, as Korfakkan is a small facility.
Not only are the freight charges higher, but insurance companies do not give insurance. The exporters have to send the containers at their own risk. “There is no insurance. If something goes wrong, then we have to bear all the losses,” pointed out Khushi Shah, a third-generation exporter.
According to her, only big exporters and traders can survive in such a situation, as it is about money and patience. The payment cycles that used to generally take about a week or 10 days are now taking more than a month.
Stagnant Prices
Another important factor is that cumin prices have not increased due to delays in exports, less demand from China, and a bumper crop this season. Cumin is trading around Rs 250 per kilogram.
China usually imports 70,000 to 80,000 metric tons of cumin from Unjha, and there are reports that it has grown to 100,000 metric tons, said Patel. Shah feared that Indian markets would be affected in a decade if China continued to produce cumin.
Currently, a majority of the exporters are not dealing with any new clients, considering the risk. Moreover, they are providing Free On Board (FOB) to the importers from the Mudra Port instead of CIF (Cost, Insurance, and Freight) as the importers feel that they are being charged higher.
In July this year, cumin and fennel registered with the Unjha Agriculture Produce Market Committee received a GI tag. It remains to be seen if the market is able to capitalize on it and get a premium in the times to come.