Jeera market to remain firm on robust demand.

The jeera market is likely to remain firm due to a robust demand and reluctance by farmers to sell at lower prices.

Traders believe that the market has bottomed out and is likely to firm up as domestic demand increases in the days to come. A global shortage of the commodity is also helping in the sentiments. Jeera is a winter crop sown from October and the yield mainly depends on the rains.

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.

Sudha Acharya of Kotak Commodities feels the market has reached its bottom and will now move up . "Demand is good from both the domestic and export market. Farmers are reluctant to sell below Rs 10,900 a quintal and this should give some support to the market,” she added. Geo-political tensions in Syria and Turkey have led to a supply crunch in the global markets raising concerns from the two major exporting countries. Export orders are diverted to India. Production is also expected to fall in Syria and Turkey due to crop failure. Exports of Jeera between April–December of 2013 stood at 96,500 tonne , higher by 89% as against 50,944 tonne between April-December 2012.

During the FY 13, jeera exports stood at 86,500 tonne for Rs 1150.56 crore, which is an increase of 95 and 90 % in volume and value over the preceding fiscal.

Spot price at Unjha on Wednesday evening stood at Rs 11,182 per quintal. The spice board data shows jeera prices at Chennai on May 10 at Rs 137.50 per kg compared to Rs 160 per kg last year. Tensions in Syria and Turkey may provide some support as India is a major supplier in the global market. The new crop in Syria and Turkey is harvested in August–September but with tensions escalating in the region, the supply could be hampered. Besides India, jeera is cultivated in Iran, Turkey and in Syria mainly for exports.

Angel Commodities reports that India’s jeera exports have crossed 1, 00, 000 tonnes during the last fiscal. The reports also adds that jeera futures are expected to trade on a positive note as domestic as well as overseas demand may continue to support prices. However, comfortable supplies may cap sharp gains.

Source : financialexpress.com