The Hindu Business Line : Cummin exports surge on global short supply

Kochi, Jan. 1 Sharp fall in cumin seed supply from other origins last year has led to a surge in its exports from India and for the first time in its history shipments reached 27,300 tonnes valued at Rs 284.93 crore in the first eight months of the current fiscal, surpassing the target, in terms of value, set for 2008-09.

The target for the current fiscal is 28,000 tonnes, valued at Rs 275 crore. The shipments during April- November stood at 27,300 tonnes valued at Rs 284.93 crore against 16,520 tonnes valued at Rs 174.83 crore in the same period last year. It has shown an increase of 65 per cent in quantity and 63 per cent in terms of value compared to the corresponding period in 2007, according to Spices Board sources.

Crop failure in the main producing countries viz., Syria, Turkey and Iran is said to have increased the demand for the Indian spice, they said.

A similar situation, but not as severe as it was in 2008, prevailed in 2007 also and that pushed up the unit value to Rs 105.83 a kg during April-November 2007. However, during the same period in 2008, the unit value marginally dropped to Rs 104.37 a kg.

Spot prices on December 31, 2008 in Unjha, Rajasthan, the main primary market were Rs 10,659 a quintal.

Weather conditions

The prevailing unfavourable weather conditions in the growing areas in Rajasthan and Gujarat might affect the crop in 2009. In addition, the stock available with the stockists and the exchanges is thin. On the other hand, demand from the domestic market is likely to emerge in the coming days. Given this scenario, the prices are likely to move up.

While the main growers, Syria, Turkey and Iran, export almost 90 per cent of their output, India consumes over 90 per cent of its total production, estimated to be somewhere between 1.5-2 lakh tonnes of cumin, industry sources said. As against this, the domestic demand is estimated to be around 1.6-1.9 lakh tonne, they claimed.

World demand

According to industry sources, the Syrian production is estimated at around 7,000 tonnes, lower from the initial estimate of 17,000-18,000 tonnes. Production in China has also reportedly dropped due to flooding.

The area under the crop in Syria, Iran and Turkey, the major producers, is reported to have dropped significantly following the farmers shifting to other remunerative crops such as wheat and barley.

The total world demand for cumin is estimated at 30,000 tonnes. Indian cumin is exported in its natural as well as powdered forms, besides as essential oils. Exports are mostly to the US, Singapore, Japan, the UK, and West Asian and Gulf countries, the sources said.

It is also grown in a small way in North Africa, Afghanistan, Pakistan, North America and Chile. Though cumin is a native of Egypt, the largest producer and consumer of it in the world today is India. The output in Gujarat is estimated to be around 1.2 lakh tonnes from an area of 2.64 lakh hectares while that from Rajasthan is projected at 35,000 tonnes from 1.5 lakh hectares.

The current global financial turmoil has influenced almost all the commodities markets and jeera is no exception. Its prices also continued to decline on the futures markets on selling pressure “as stockists and hedgers were selling their stock in panic”.

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