Despite bumper production, prices of cumin (jeera) are staying at elevated levels, causing industry to suspect hoarding by the traders and big farmers in anticipation of even higher prices.
According to Dinesh Patel, chairman, Agricultural Produce Market
He added that prices were expected to stabilize at this level for another month or two due to the farmers’ and traders’ reluctance to sell at lower prices, and could touch last year’s level around October as the festive season commences.
Gujarat and Rajasthan account for almost 99% of cumin production in India
U Karthik, Co-Chairman, Federation of Indian Spice Stakeholders, said, “Traditionally, the trade for cumin seeds slows down after the month of June. With the onset of monsoons, farmers are busy with crop sowing. The trade picks up pace with the arrival of festival season around September.”
He further said, “The immediate market demand can be met with the cumin seeds coming from alternative markets like Syria, Turkey, Iran and China. They all have a combined production of around 1 lakh tonnes of cumin which can cater to the demand for the next two or three months.”
Ramakrishnan M, Managing Director, Primus Partners, said, “Cumin production in India has varied between 5.5 to 9 lakhs metric tonnes over the past 6 years. Correspondingly, prices have fluctuated widely between Rs 125/kg to ~Rs 600/kg. Given the fact that this spice is not a government-controlled commodity such as wheat or onion, it is easy for traders and speculators to take bets. Traditional players can hold stocks, and let prices go up.”
“Cumin is harvested between March and May. The prices tend to be low in this period, but slowly build up until Diwali. Last year, the prices peaked around Sep/Oct before the prices started falling. Similar trend is expected this year. Prices may hit last year highs again”, Ramakrishnan said.
