Expectations of stronger production in the upcoming season led to a -0.38% settlement yesterday, with Jeera prices closing at 28510. Because farmers are holding back stock in the hopes of receiving better prices, the expectation of a 30% increase in production to 8.5–9 lakh tonnes has affected market sentiment.
Due to strong domestic and international demand as well as restricted global supply, the market has experienced little downside despite this downward pressure. Increases in cultivation areas in major producing regions such as Gujarat and Rajasthan are a major factor driving the recent boom in jeera production.
Rajasthan saw a 16% increase in sowing area, while Gujarat alone saw an astounding 104% growth. With Gujarat projecting production to reach 4.08 lakh tonnes, a significant rise from prior years, this expansion is predicted to lead to record production levels. The dynamics of the cumin market are changing on a global scale as a result of notable output increases in China, Syria, Turkey, and Afghanistan.
The output of cumin has more than doubled in China, and this, together with higher production in other areas, is probably going to cause prices to drop as additional supplies hit the market. India’s jeera exports have increased significantly in terms of commerce; in April 2024, exports were 38,026.96 tonnes, up 133.55% from the same month in 2023. Despite the anticipated rise in production, the export pattern indicates robust global demand.
