Due to strong export demand and projections of decreased supplies at the end of the current marketing year, jeera yesterday finished up 1.51% at 46610. Prices increased as concerns about the harvest grew owing to hailstorms and unseasonal rains in Rajasthan, the state that produces the majority of the food. Demand from domestic and international purchasers has increased as a result of the market’s expectation of a lower yield and quality of jeera this season.
Concerns over the crop status have been raised by recent unseasonal rains that have fallen in Rajasthan’s jeera-growing regions in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer. The demand for cumin is expected to exceed 85 lakh bags this year, while the supply is only expected to be 65 lakh bags, according to FISS projections. One bag can contain 55 kg. A demand-supply mismatch will result from this.
Approximately 30% of the crop in Gujarat and at least 70% of the crop in Rajasthan are still unharvested at this time. The overall yield will be lessened as a result of the rain in both states. Two periods of unseasonal rain during the harvest season completely ruined the cumin crop. With a carryover supply of 5 lakh bags from the previous year, the stock will be down from the anticipated arrival of 70 lakh bags to 60–65 lakh bags.
Jeera’s price in Unjha, a significant spot market in Gujarat, increased by 650.15 rupees to finish at 47058.2 rupees per 100 kg. Technically, the market is seeing fresh buying as open interest increased by 0.57% to close at 9531 while prices increased by 695 rupees. Currently, Jeera is receiving support at 45650; a move below this level could result in a test of the 44695 levels, while a move above this level could result in a test of the 48255 levels.