Jeera or cumin prices have fallen 3 per cent in the past couple of weeks amid slowing exports in the wake of the commodity prices rising to a record. However, the fall in prices is likely to be temporary, according to commodity brokers and exporters, given 10-15 per cent stock shortage.
After hitting a high of Rs 202 kg at the end of August, the October futures for delivery at National Commodity and Derivatives Exchange (NCDEX) has slid to Rs 196.80 per kg on Tuesday.
“High prices have hit export demand to some extent. Exports are continuing, though at hand-to-mouth level,'' said Shailesh Shah, director at exporting firm Jabs International.
Cumin accounts for the lar gest exports from India among spices, after chilli, earning nearly Rs 2,000 crore last year.
Another reason for sluggish exports is that Syria has emerged as a competitor to India with its new crop. “Both are selling at $3,000 per tonne. But as it is a new crop Syrian cumin has more takers. Syrian cumin is routed through Dubai because of internal strife in the country,'' said Dipakh Parikh, partner of Kanu Krishna Corporation, an exporter. India's cumin production is said to be 13 per cent short at 3.87 lakh tonnes this year. “The current fluctuation in prices is due to profit-booking.The prices may rebound as the supply is short,'' said Ritesh Kumar Sahu, research analyst at Angel Commodity Broking.
Thanks to higher prices this year, the acreage under cumin may increase 20-30 per cent next year, Sahu said.
Source: economictimes.indiatimes.com