Jeera (cumin) prices have undergone a significant surge, nearly doubling since the beginning of the year, and have reached a peak of ₹60,000 this week. The September contracts closed at ₹61,080 on Tuesday, briefly touching a high of ₹61,740 within the day.
In the physical market, the Unjha agricultural produce marketing committee (APMC) yard recorded a modal price of ₹57,000 for the spice seed on Tuesday. This surge in prices can be attributed to several factors, including concerns over output amid robust demand, particularly from export markets.
As a result, jeera prices have achieved record highs, registering a remarkable 90 percent increase on the National Commodity and Derivatives Exchange (NCDEX) so far this year.
According to Anu V Pai, a commodity research analyst at Geojit Financial Services, the limited supply in the market, combined with strong demand, has driven the price escalation. The situation is exacerbated by the fact that the next crop of jeera is only expected in February-March 2024, resulting in inadequate supplies.
Currently, there are only 70-72 lakh bags (50 kg each) available against a total demand of 85 lakh bags, including exports.
Agriwatch, a market analysis firm, has noted a 4.11 percent reduction in this year's jeera production, leading to lower supplies. Consequently, the current marketing year's supply is anticipated to decrease by 13 percent compared to the previous year, resulting in reduced ending stocks in the jeera spot markets. This scenario has contributed to the prevailing firm sentiment in the jeera spot market.
