Kochi: Cumin or jeera futures have touched a new high, driven by strengthening export demand amid supply constraints.
For December delivery, jeera futures flared up to Rs 204 per kg on the National Commodity and Derivatives Exchange (NCDEX) before closing at Rs 202.2 per kg on Monday. On Tuesday, however, it ruled lower at Rs 201.50 per kg. “Jeera futures have increased by 8.8 per cent in a week. The prices have surged due to improving physical demand against limited stocks with the traders,” said Ritesh Kumar Sahu, analyst at Angel Commodities Broking.
Although export of the commodity in the first half of this year has been marginally lower than last year’s corresponding period, it has picked up in the recent months, raising the sentiments of the jeera futures market.
“Jeera from Turkey and Syria is more expensive than the Indian variety. At $3,100 per tonne, it is $200 higher than the Indian variety. China has been buying regularly,’’ said exporter Dipak Parikh, partner of Kanu Krishna Corporation, another exporter.
As per commerce department data, jeera exports in the five months to August 2017 stood at 63,085 tonnes, about 2.5 per cent lower than a year ago. The production last year stood at 3.87 lakh tonnes, down 13 per cent from a year ago. India is likely to be the principal supplier in the global market till the next harvest happens from February.
“At present, India is meeting whatever is the demand in the world market. Falling inventory and the nearing harvest have fuelled speculation in futures,’’ said Shailesh Shah, director of Jabs International Pvt. Ltd. another exporter.
The shipments are expected to increase in the coming months, provided the prices cool down.
Meanwhile, the acreage for sowing for the next crop, which has already started, is expected to increase, given the higher price jeera fetches. Gujarat and Rajasthan are the chief producers of the commodity.
“As per the latest report by the department of agriculture of Gujarat, the acreage was about 60,000 hectares compared with 36,600 hectares sown in the same period last year. The acreage in both the states is expected to rise about 8-10 per cent for next year,’’ Sahu said.
Source: economictimes.indiatimes.com