Due to strong local and export demand as well as limited worldwide supply, jeera prices rose by 2.13% yesterday to close at 27,515. Notwithstanding these positive indicators, forecasts of increased output in the current season limited the upside potential and might put pressure on pricing moving forward. Farmers holding back supplies in anticipation of stronger prices also bolstered the market’s rising trend.
Due mainly to enlarged agricultural areas in Gujarat and Rajasthan, production projections for jeera show a considerable increase of 30% this season, reaching between 8.5 and 9 lakh tonnes. The area under cultivation increased by an astounding 104% in Gujarat and 16% in Rajasthan.
Countries including China, Syria, Turkey, and Afghanistan have increased their output of cumin in an attempt to profit from the previous high prices, and this production spike is a part of a larger worldwide trend. Costs are anticipated to decline once these additional supplies hit the market. Regarding trade dynamics, jeera exports from April to March 2024 decreased by 13.53% to 152,189.32 tonnes from the same period the year before.
This decrease was caused by pressure from competitive pricing as well as varying worldwide demand. In March 2024, on the other hand, shipments increased significantly by 198.98% month over month showing that export patterns are not constant and are impacted by pricing and market conditions.
