| Date: |
06-01-2014 |
| Subject: |
Overseas demand to support jeera |
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Jeera, or cumin seed, is a winter crop sown from October and farmers mainly depend on rains to moisten the land for sowing. Jeera sowing has already come to an end in the key cultivating areas of the country. Arrivals of the new crop usually start from February-end and March. This time round, agro-market analysts admit that there is a conducive weather, which has brightened the prospects of higher production and large stocks.
Generally speaking, bullish sentiments have returned to the agri market in the New Year on expectations of demand recovery in the coming weeks after massive price corrections in agri-commodities last year. Market analysts expect exports and domestic demand to pick up from the current levels.
According to Angel Commodity Broking one can already see a 10-15 per cent increase in sowing area. This means the crop will be better this year than in the previous season. Jeera production was around 45 lakh bags (each bag of 55 kg) last season. Gujarat and Rajasthan are the main jeera producing states in India.
According to Angel Commodity, jeera price could fall slightly from the current level of Rs 125 per kg. But good overseas demand will prevent a steep fall. Prices should remain in the Rs 122-Rs 134 range per kg in the medium term.
India is the world’s largest jeera or cumin seed producer, followed by Syria and Turkey. Significantly, Syria is yet to come out of the political uncertainties. The two countries had poor crops. China also had a poor crop and has already started buying from India, as its production is not sufficient to meet own requirement.
Simultaneously with the expansion in the area under cultivation and expectation of a good crop, the export demand for jeera, which is already good, is expected to improve further in the coming days.
“Traders anticipate a rise in exports in the coming months amid reports of lower production in Turkey and Syria. Latest reports from the Spice Board of India pegs exports at 67,500 mt, up 93 per cent both in amount and value during the period April-September period of 2013 compared with the year-ago period. Production and exports from Turkey and Syria are reportedly down this year due to political tensions. Export demand from the Gulf countries is likely to shift to India due to this factor — as per sources,” Religare Retail Research said in a report.
The report pointed out that a fall in the dollar is unfavourable on the export front. Traders also attribute the recent fall in price to profit booking in the futures markets, as they anticipate futures price to rise proportionately higher compared with spot price.
Yearly exports of jeera were hovering between 45,000 tonnes and 50,000 tonnes till 2011-12. Shipments touched 80,000 tonnes in 2012-2013.
Some analysts suggest India’s dominance in the global jeera market looks set to extend further with a bumper crop predicted for the next year and so many factors working in favour of Indian jeera. So much so that jeera exports may even cross the 1 lakh tonnes mark. India’s dominance in the global jeera market will certainly continue till production volumes pick up in Syria and Turkey.
Source : mydigitalfc.com
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