Jeera (cumin) prices reached a new high of 48,420 rupees per quintal on NCDEX on Monday due to strong export demand and low supply. Before declining to 46,560 during the day, NCDEX jeera May futures reached a fresh high of 48,420. With gains of more than 3.4% on Monday, the seed spice led all gainers on the NCDEX futures. Jeera reached a price of 47,985.90 rupees per quintal in the spot markets in Unjha in Gujarat.
In the previous six months, the seed spice has increased by approximately 90%, with a 30% increase in the most recent month alone. Market participants blame China’s increased demand for this ferocious surge on China’s higher demand and smaller crops. There is a lack of supply, according to Premchand Motta, an expert in spices. He declared, “Wealthy farmers are keeping 50% of their jeera produce. Compared to the 30–35 lakh bags of carryover recorded for 2022, last year’s carryover stock was 5 lakh bags (each weighing 55 kg). Currently, the mood is bullish.
Farmers may try to sell their stocks when the market stops for two or three days, according to Motta. Analysts predict that between 60 and 65 percent of Rajasthan’s whole harvest and between 65 and 70 percent of Gujarat’s total crop were sold. Out of the expected 50 million bags total harvest, this indicates that around 28 to 30 million bags (each weighing 55 kg) have arrived. Daily jeera arrivals in Unjha were between 30,000 to 35,000 bags approximately a month ago, but they are currently just 7,000 to 8,000 bags per day.
Kedia Advisory stated in its study report that “jeera price has increased over 50% in 2023 due to steady increase in export demand. It is challenging to meet the demand for export processors due to China’s substantial cumin purchases. China has bought 300–350 containers of cumin from India during the last three weeks. Cumin has also been purchased in large quantities by Bangladesh.