Jeera is estimated to trade lower in October due to good stocks and lower export demand. Arrivals are seen higher year-on-year with last season production higher than normal. Deficient rainfall in jeera farming areas may support the market in the long run. 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 production.
According to broking firm Angel Commodities, jeera arrivals during the last quarter (July-September ) were higher 84% year-on-year. This increase in arrivals attributed to higher comparative prices this season compared to last season coupled with higher production during last year.
“According to the 4th advance estimate for Gujarat state, this year production is estimated at 2.88 lakh tonnes, up by 45.5% primarily on higher acreage and favorable climate. Jeera production for the previous year was 1.98 lakh tonnes,” Angel sources said.
Gujarat is the largest jeera producer followed by Rajasthan. Higher oil prices and dollar strength, which has battered the currencies of several big crude importers, could hit demand growth next year
On Monday evening, jeera closed lower at Rs 19,151.7 per quintal at the spot market of NCDEX counter. Besides India, jeera seed is cultivated in Iran, Turkey and Syria, mainly for exports.
The new crop in Syria and Turkey is harvested during August-September. The harvest period in India for jeera starts around February-March. Indian jeera exports are higher for the past few years due to geopolitical tensions in Syria and Turkey.
Angel reports that exports are likely to decline after significantly higher exports seen in April-July period and prices relatively on the higher side.