Higher Production Prospects Caused Jeera Prices to Drop

Prices for jeera (cumin) saw a sharp decline during yesterday’s trading session, falling by -3.36% to settle at 25335. This decline was mostly caused by expectations of increased output in Gujarat and Rajasthan, two important cultivating regions. This year’s rabi season saw farmers in Gujarat and Rajasthan significantly increase their jeera cultivation, bringing the acreage to a four-year high.

The previous marketing season’s record prices encouraged farmers to greatly extend cultivation, which is why there was a boom in acreage. This shows that there is a strong association between market prices and acreage patterns.

Gujarat’s jeera crop grew to 5.60 lakh hectares this year, an astounding 160% more than the 2.75 lakh hectares the year before. This is more than the state’s average of 3.5 lakh hectares. In the same vein, jeera farming increased by 25% in Rajasthan, reaching 6.90 lakh hectares from 5.50 lakh hectares the year before.

Due to significantly higher prices in India, purchasers preferred alternate origins like Syria and Turkey, which presented hurdles to the global demand for Indian jeera. Compared to the same time in 2022, export volumes decreased by 29.95% between April and December of 2023.

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