A pinch of jeera to pinch more as prices top ₹50,000/qtl

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Few Jira (Cumin seeds) You’ll pinch more than just a pinch.! the The price of the seed exceeded INR 50,000 per quintal (500 rupees per kilogram) in futures contracts, leaving consumers on edge.

Ketki Vaishnav, a resident of Ahmedabad says, “Jeera is not a big consumption commodity for us. But prices have more than doubled from last year. This sharp price hike is definitely stressful.”

Jeera is useful in traditional healing methods for indigestion, weight loss, cholesterol and inflammation. With the price hike, consumers will have to dig deep into their pockets now.

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However, neither consumers nor exporters are likely to cut back on their purchases. Jira is not an essential commodity and does not contribute to the inflation index. So while the price doubling affects consumers, the quantity consumed is not much. Secondly, on the export front, the entire pipeline is empty in global markets. India is the only supplier right now, so exporters are being forced to buy even at higher prices, said Ajay Kedia of Kedia Advisory.

crop estimation

]Notably, prices in futures markets have doubled since December 2022 from levels of ₹25,085 a quintal to ₹50,765 a quintal. NCDEX June futures. During the day, prices jumped more than 4 percent from the previous close in futures contracts. On the spot market in Unjha, the price of jeera reached 51,259.05 rubles per quintal on Monday afternoon.

According to market sources, the number of arrivals has so far reached about 1.29 thousand tons. According to crop estimates by the Federation of Indian Spice Stakeholders (FISS), Jeera production is likely to be around 3.84 thousand tons (69.96 thousand bags of 55 kg each) for 2022-23 – up 28 percent from last year’s 3.01 thousand tons. . . This follows an area increase of 12.9 percent in the major growth regions of Gujarat and Rajasthan. Returns were estimated at 13.2 percent compared to last year.

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However, unseasonal rains in parts of Gujarat and Rajasthan and wet and cloudy weather during the winter led to the crop estimate falling by about 60 sacks. Also, the influence of El Nino during the latter part of the monsoon season is expected to affect the outlook and hurt sentiment.

positive vision

Other global suppliers, Turkey and Syria, are likely to face crop uncertainty, leaving India as the sole supplier to global markets for the time being. This is likely to increase the bullish feeling towards the spice seeds.

Spice expert Premchand Mota noted that there is more potential upside in seed spices. He said, “Jireh will remain high because supply is constrained. Already good export business has been done. The outlook for Jeera is good but profit-taking will be seen.”

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