On strong export demand and reduced stocks, jeera (cumin seed) prices have shot up by nearly 30 per cent in a short span of three months between May and July.

Spot prices of the spice were at ₹15,806 a quintal at the Unjha market in May. They shot up to ₹20,500 by the beginning of August. “There has been a rally in the jeera market in the past 2-3 months, especially due to international factors. There are reports of crop damage in Turkey due to floods. Due to this, overseas buyers have turned to Indian jeera,” said Vijay Joshi, a jeera trader.

According to trader sources, since the beginning of the season in February, India has exported nearly 1 lakh tonnes, almost double the quantity from last year.

“There are some more export commitments to be fulfilled. So we believe exports will be even more than this. Plus we have domestic consumption, which is also putting pressure on the prices,” said Joshi. China, Bangladesh and West Asia are the major buyers, besides the US. Jeera prices touched a peak of ₹22,400 a quintal in December 2017. “There is a likelihood of a further rally in jeera prices and it may scale a new high ,” he said.

Farmer sources revealed that the crop was about 10 per cent lower hence prices had started strengthening. Unjha APMC sources said that arrivals continued with about 7,000-8,000 bags (each of 55 kg) reaching as the prices started heading north.

In its commodity update released on August 2, Kedia Advisory gave a ‘sell’ call for NCDEX Jeera September futures at ₹20,400 with the target of ₹20,220-19,980.

“Unjha market in Mehsana arrivals were reported at 18,000 bags, up by 3,000 bags as compared to previous day. NCDEX accredited warehouses jeera stocks gained by 199 tonnes to 2,479 tonnes,” it added.

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