Agri Business

Lower yield, production may spice up cumin prices

Rutam Vora Ahmedabad | Updated on March 09, 2021

Once ready, specialised institutions will collect seeds   -  The Hindu Business Line

Coriander output estimated 2% up

Prices of seed spices such as cumin seed (jeera) and coriander (dhaniya) could see significant price movements with the former rising on lower production and the latter coming under pressure on better production.

Citing climatic adversities in Gujarat and Rajasthan, the Federation of Indian Spice Stakeholders (FISS), in its crop projection for 2020-21, has estimated a 10.6 per cent drop in cumin seed output at 4.79 lakh tonnes against 5.35 lakh tonnes previous year.

The FISS survey, conducted by students of Dantiwada Agriculture University in Gujarat, indicated that the all India yield per hectare may be lower by 3.6 per cent at 504 kg (522 kg last year). The cultivation is 7.3 per cent lower at 9.50 lakh hectares against 10.26 lakh hectares in the previous year. Experts said that the smaller crop, coupled with strong export prospects, will fuel the seed spice. From the current price levels of ₹13,516 a quintal in the spot market, jeera prices are expected to head northwards to ₹16,000-17,500 a quintal.

 

Bhupesh Sharma, a spices trader from Bikaner said: “The yield is likely to be poor due to climatic adversities in the growing regions. This may fuel the prices.”

Kolkata spices broker Premchand Motta said that prices may fall under arrival pressure in the near-term. “But once the arrival pressure is over within a month or so, prices will start increasing towards ₹15,500-16,000.” NCDEX jeera futures for March quoted at ₹13,890 per quintal on Monday, but the far-month contract for April it quoted a high of ₹14,155.

For coriander, FISS has projected the crop size at 3.92 lakh tonnes, up 2.3 per cent from 3.83 lakh tonnes last year. The survey pointed at a big drop in Rajasthan (20%) and Madhya Pradesh (15%) at 67,630 tonnes and 1 .24 lakh tonnes respectively on sharp dip in the acreage. However, the survey said coriander output in Gujarat could rise by 31 per cent to 2 lakh tonnes against 1.52 lakh tones last year on 32 per cent jump in the acreage.

Coriander prices quoted at ₹7,032 a quintal in spot market. In futures, NCDEX Dhaniya April contract on Monday fell by 2.7 per cent to ₹6,936 a quintal, while far-month contract — May contract — quoted at ₹7,016 a quintal down by 1.38 per cent over previous session. The survey also estimated fenugreek output for the year 2021 at 2.17 lakh tonnes, up by 51,590 tonnes from 1.68 lakh tonnes last year. For fennel seed, FISS survey has suggested India’s production to be down by 13% to 78,260 tonnes as against 89,970 tonnes last year, primarily on account of lower acreage in growing regions of Rajasthan, Gujarat, UP and MP.

Published on March 09, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor