Jeera markets are maintaining a strong trend since past few weeks. Trade environment has changed of late as exports outlook has brightened, against lower crop estimations. Prices since last few weeks are holding above the 14000 mark.
The price view for Coriander and Turmeric remains bullish, which is another factor in supporting Jeera or cumin markets. Trade sources say that cumin exports from India may surpass 2 lakh tons in next few months. India is the biggest exporter of the spice, contributing over 80% of the total cumin production of the world, India mostly exports to the Gulf countries, followed by the US, Europe, China and Latin American countries.
Cumin production in Turkey was around 15,000 tonne last year, and the country may produce lesser this year as estimated by traders and industry persons. Similar situation is seen in Syria, where production is estimated be lower because of political instability. Turkey and Syria are closest rivals of India in terms of exporting cumin. Afghanistan also produces small quantities of cumin and has a negligible share in the exports market. This implies that India will have the advantage of supplying most of the worlds requirements of cumin this year.
Based on ground reports, production of Jeera/Cumin may fall by 10 to 15% compared to last year. Production was around 92 lakh bags (55 kg per bag) in 2019-2020. This season, the out may be between 85 and 90 lakh bags. Traders say that harvest in the leading producing states of Gujarat and Rajasthan is more than 90% complete. As per the government data, the planted area in Gujarat state has dropped to 4.69 lakh hectares from last seasons 4.88 lakh hectares.
At present Jeera prices in major Unha market is offered between Rs 14000-14200/qtl and under given scenario, there are expectations of prices to appreciate by at least Rs.1500-2000/qtl from current level, in near future. Therefore farmers are advised to hold their produce for next few months and wait for generating better profit margins from their sale.