The coronavirus-induced lockdown and the exodus of workers have dampened the jeera trade in Unjha, the largest marketyard in Gujarat.

Trade disruption, caused by demand destruction and sub-optimal operations at the processing units, has pulled down jeera prices by about 10-15 per cent over the last year.

30% jump in output

The price decline is happening at a time when farmers are expecting nearly 30 per cent jump in jeera crop from 4,16,600 tonnes reported in 2019 to 5,35,500 tonnes this year, as projected by the Federation of Indian Spice Stakeholders (FISS) in February this year.

The spot prices pooled by the National Commodity and Derivatives Exchange Ltd (NCDEX) has quoted jeera prices at ₹1,4265 per quintal for April 27, 2020, which fell by ₹276 per quintal within a week to ₹13,989 on May 4,2020. In futures, NCDEX May contract quoted at ₹13,770.

According to trade sources, jeera prices hovered in the range of ₹12,250 to ₹13,325 per quintal at markets in Gujarat, lower by 10-15 per cent from ₹16,350-16,450 quoted at spot markets in Unjha around same time last year.

Auctions suspended

According to the Unjha APMC officials, the yard has suspended auctions indefinitely due to the coronavirus scare. “There will be no jeera auctions at the APMC till the pandemic outbreak is brought under control. It is difficult to maintain social distancing during auctions. So we have decided to suspend auctions from May 5 till further notice,” said an office-bearer at the Unjha APMC.

Trade sources, however, said that even though auctions are suspended, traders individually conduct trading activity with a reduced workforce. “Arrivals had begun in February, but due to the lockdown, not many farmers could bring their crop. And we may see continued arrivals till the end of May,” said a jeera trader at Unjha APMC.

Subdued demand

The jeera crop condition is said to be good and the output is expected to be on the lines of projection. But the off-take is limited with major wholesale consuming sectors such as restaurants and hotels remaining closed.

“They consume about 7-8 per cent of the overall jeera sales. In addition to that, export orders are not moving due to short-staffed processors,” said Bhavesh Patel, a jeera trader. The major challenge for the jeera value-chain is labour availability as traders claim the supply pipeline is empty, but the processors are unable to cater to the demand due to labour shortage.

“We have no clue when the labourers will return, or they will return at all. This uncertainty is further weakening the prices,” Patel said.

Acreage

Total area under jeera is believed to be higher by 25 per cent from last year at 10,25,600 hectares. Gujarat and Rajasthan are the two jeera growing States, where the acreage has seen 40 per cent and 16 per cent jump from last year to 4,39,830 hectares and 5,85,770 hectares, respectively.

The overall yield is estimated to be in the range of 522 kg per hectares with a marginal increase of 3 per cent over last year.

comment COMMENT NOW