Rebound in export demand and deficient rainfall may drive jeera (cumin) prices up in the coming weeks.
The October futures contract prices in NCDEX hovered around Rs 195 per kg on Thursday.
The overseas demand for Indian jeera is expected to increase as the supply from other sources are limited and of poor quality. “The stock from Turkey and Syria has been damaged by rain. Though Indian jeera is priced $300 higher at $2500 per tonne in the global market, it is drawing more buyers because of superior quality,’’ said Dipak Parikh, partner of Kanu Krishna Corporation, an exporter.
Demand from China, which is a significant buyer, is expected to go up in the next few weeks. “There are some problems in Hai Phong port in Vietnam which is delaying the shipments to China. Once it is cleared, more consignments may go to China,’’ Parikh said. Exporters feel the prices will cross Rs 200 per kg by November.
Lack of sufficient rains in some jeera growing regions in Gujarat and Rajasthan, two top producers, may impact the sowing that will begin by the end of the month. “There may not be any increase in the sowing area because of dry weather. But those regions which have good irrigation facilities will have good output,’’ said Ritesh Kumar Sahu, analyst at Angel Commodity Broking.
Jeera futures prices had crossed Rs 200 per kg in August but then fell on profit booking and subdued demand. Robust domestic demand is keeping the prices at above Rs 190 per kg level now. “If the producing states receive good rains in November, then the sowing area could see an increase,’’ Sahu said. In the event, prices may see a decline.
Source: Economic Times