India is the world’s largest producer and consumer of jeera
The jeera market is seen firming up due to robust demand and reports that the sowing for the next crop is on the lower side. However, lower than anticipated exports are seen capping a rally, traders said. India is the world’s largest producer and consumer of jeera. While India consumes 75-80% of the commodity produced, the other producing countries export most of the product.
Spot prices on Tuesday evening at the NCDEX counter recorded R16,100 per quintal at the Unjha market.
Jeera futures are seen trading higher amid limited arrivals and good demand for the spice after Diwali holidays. Reports of delayed sowing due to unfavorable weather in major growing areas also support the prices, Vishidha Vijayakumar of Geofin Comtrade told FE.
Angel Commodities reports that the slow progress of sowing at the major producing regions of Gujarat and Rajasthan are keeping prices higher in the spot market. Gujarat, the top cumin-producing state, has planted less cumin till date. “As per fourth advance estimate of Gujarat State, production is expected at 1.58 lakh tonne in 2014-15, which is 54.3 % lower, compared to last years’ production of 3.46 lakh tonnes,’ Angel sources said. Kotak Commodities reports that demand has witnessed a compound average growth of 7% in the last five years. The last Kotak report says total supply in the market, which includes opening stock, production and imports for the season 2014-15 is estimated at 4.2 lakh tonne year-on-year, down by 35%.Stock to usage ratio for 2014-15 is estimated at 9%, lowest in the last seven years.