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Jeera price likely to remain firm on robust demand.


Date: 09-09-2016
Subject: Jeera price likely to remain firm on robust demand
Jeera prices are on the uptrend due to robust demand from the domestic and international markets. Lower than expected production in Syria and Turkey is likely to boost exports from India.

India is the world’s largest producer and consumer of jeera. While India consumes 75-80% of the commodity produced, the other producing countries export most of the production.

“Jeera prices are expected to trade higher due to rise in exports and domestic demand amid festival season ahead. In 2016-17, the output of jeera is seen falling for major producers Syria and Turkey to 10,000 and 12,000 tonne from 15,000 and 17,000 tonne in 2015-16,” Vishidha Vijayakumar, analyst at Geofin Comtrade told FE.

Report by Angel Commodities estimates the export demand expected to pick up as prices have corrected enough in last two weeks. “There is good demand from China and other countries and may support the prices. In the next few months, the prices will depend on export demand,” Angel sources said.

Besides India, jeera seed is cultivated in Iran, Turkey and Syria mainly for exports. The new crop in Syria and Turkey is harvested in August-September. The harvest period in India for jeera starts around February-March. Indian jeera exports are higher for the past few years due to geopolitical tensions in Syria and Turkey. Jeera acreage in India is around 7.5 lakh hectares with production pegged around 4-4.5 lakh tonne, according to state-run Spices Board data.

Source : financialexpress.com

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