Jeera prices look up on higher domestic demand, exports.

New Delhi: With the reports of lesser crop output in Syria and Turkey, jeera (cumminseed) prices have started looking northward during last few weeks at Unjha, the hub of country’s trade.

According to traders in Unjha, a part of Mehsana district of Gujarat, prices rose sharply to Rs 2,600 for 20 kg from Rs 2,250 at present, a rise of over 15%, attributed to the rise in global demand and expected rise in domestic demand due coming festive season.

According to traders, prices are expected to touch the Rs 3,000 per 20 kg-mark in the next few weeks as traders are storing up stocks in anticipation of the rise in demand during the festival seasons. Owing to the rise in domestic demand, farmers are bringing in around 4,000 bags (55 kg a bag) to Unjha every day, while the demand has gone up to 6,000 bags a day. Farmers have been holding on to the stocks for better future price realisation.

“With the new crop expected only by January end or early February next year, prices are expected to remain high,” Manu Patel, president, Market Yard Merchant Association, Unjha told FE.

It is estimated that around 3 lakh bags (55 kg a bag) are lying with farmers and small traders and similar quantities are available with hedgers and traders at Unjha. “We need about 1.5 lakh bags every month to meet the domestic and export demand,” another trader said. Current domestic stocks have been around 9 lakh bags.

With the heavy rains in the key jeera-growing regions of Gujarat and Rajasthan, the sowing activities are likely to pick up because of better conditions prevailing. The demand for exports is expected to keep prices at a high as India is the only country which has jeera stocks .

With rise in demand, the carry forward stocks for the next year is expected to lower. Domestic consumption standing at around 22 lakh bags, around 3 – 4 lakh bags are exported. Due to favourable weather conditions in jeera-growing regions, the crop yield stood at around 22 lakh bags (55kg a bag) against 25 lakh bags achieved last year. Prolonged winter season also helped the jeera crop.

According to Spices Board of India, the earnings from jeera exports have gone up from Rs 201 crore during 2006-07 to Rs 548 crore during 2009-10. In terms of quantity, the exports went up to 53,00 tonne during 2009-10 from 26,000 tonne during 2006-07.

Source : financialexpress.com