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For jeera (cummin seed), 2023 has started on a sizzling note as the seed spice scaled a new record high topping ₹33,000 per quintal in the futures market on Monday. Jeera futures for delivery in January have gained over 30 per cent since December 2 from ₹25,085. In the spot markets at Unjha, jeera prices have surged 29 per cent from ₹24,857 a month ago to ₹32,116.
The bullish trend is attributed to a bleak sowing scenario in Gujarat. The Western State, which accounts for over 50 per cent of the seed spice, has reported the sowing of jeera on 2.69 lakh hectares. This is lower by 35 per cent than the three-year normal sowing of 4.21 lakh hectares. Gujarat’s sowing data till December 26 show jeera acreage to be down about six per cent YoY. Sowing in Rajasthan, however, has increased and is estimated at 5.79 lakh hectares as of December 30, Government data showed.
Best 2022 performer
On the NCDEX, jeera’s January contracts quoted at ₹33,090 per quintal, up 5.99 per cent from the previous settlement. Jeera emerged the best-performing commodity in 2022, gaining over 80 per cent.
“Prices increased to a record high amid higher demand for the fresh crop and supply tightness in the physical market. Good demand is expected from China in December-January and Ramzan demand during January-February from Gulf and other countries,” said Kedia Stocks and Commodities Research in its spices commentary on Monday.
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Jeera hits record high on thin stocks, crop concerns
Warmer weather conditions, lower carryover fuel jeera prices to all-time high of ₹26,700 per quintalReduced sowing in Gujarat, coupled with a tight supply, and climatic uncertainties ahead of the festive demand may fuel the sentiment further, analysts say. This comes on the back of low carryover stock of about 10 lakh bags (each of 55 kg).
The far-month contract for April Futures gained 6 per cent intra-day on Monday to touch a high of ₹33,845 indicating further upside in jeera towards April.
The trade has estimated India’s jeera production for 2022-23 to be down by around 33 per cent to 2.7 to 3 lakh tonnes YoY.
Jeera exports during the April-October 2022 period dropped by 18.92 per cent to 1,22,015.13 tonnes as compared to 1,50,479.11 tonnes during the same period in 2021, the analyst firm noted. The October 2022 exports dipped by 31.27 per cent to around 12,427.86 tonnes, as against 18,081.78 tonnes exported in September.
Most of the jeera sowing is completed and the fresh crop will start arriving in February but the weather holds the key to a good crop.
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