Due to anticipation of increasing supply, which could put downward pressure on pricing, jeera finished down 0.4% at 28,990 yesterday. The downside was, however, constrained by strong export and local demand as well as restricted global supply.
The market was also helped by farmers holding back their supply in anticipation of higher prices. This season, jeera production is predicted to increase by 30% to 8.5–9 lakh tonnes as a result of a significant increase in the cultivated area. The sowing area rose by 16% in Rajasthan and 104% in Gujarat.
China has led the global expansion in jeera manufacturing, which has increased dramatically. From 28–30 thousand tonnes, China’s cumin output increased to above 55–60 thousand tonnes. Increased output in Syria, Turkey, and Afghanistan was spurred by high prices in the previous season; additional seeds are anticipated in June and July.
Turkey expects to produce 12–15 thousand tonnes, whereas, weather permitting, Afghanistan might produce twice as much. Prices for cumin are probably going to drop when these new supplies hit the market. The price decline is also attributed to a decrease in cumin exports, which suggests a change in the dynamics of the world market. According to trade specialists, cumin exports will rise significantly and reach 14,000–15,000 tonnes in February 2024.
