Weekly Review-Cumin

29-Jun-2024 08:20 PM

Trade in cumin is low: Possibility of rise on export demand

New Delhi. Currently, the trade in cumin market is limited. Although the daily arrival of cumin in the mandis of production centers is decreasing, but due to lack of buying by exporters, there is a soft atmosphere in the market. It is worth mentioning that in the beginning of the current month, there was some improvement in the market due to the buying by China, but after the buying subsided, the period of softening in prices has started again. Sources say that there is no possibility of much increase in prices in the near future, but there are estimates of increase in exports during the month of August. At that time, there may be a rise in prices. If the export demand does not increase, then there is no possibility of rise in prices. Prices will keep moving in a limited range.

Informed sources say that according to the information received recently, there are reports of cumin production in China being less than the forecasts. Due to which, China's export demand for cumin is being estimated. The crop condition in other countries, Syria, Turkey and Afghanistan is considered to be good. Currently, new cumin is arriving in China, while the arrival of other goods in other countries will start in the month of July.

Fall in prices

During the current week, a fall in the prices of cumin was recorded. In the futures market, however, cumin of the month of July opened at Rs. 29000 and closed at Rs. 29140. But cumin of the month of August opened at Rs. 29005 and closed at Rs. 28675 at the weekend. Due to lack of demand in the spot markets, a decline of Rs. 300/500 per quintal was recorded in the prices. In Gujarat's major Mandi Unjha, the price of average quality cumin was quoted at Rs. 255/265 at the end of the week after opening at Rs. 258/267 at the beginning of the week. In Jodhpur market of Rajasthan also, the price of cumin was quoted at Rs. 250/280 at the beginning of the week, which was quoted at Rs. 245/275 at the end of the week. But even at these prices, the trade was low. Due to the news of sluggishness from the production centres and low demand in the local market, the price of cumin in Delhi market was quoted at a low of Rs. 2/3 per kg.

Not much slowdown

Traders say that there is no more slowdown in the current prices of cumin. Because the slowdown of high production in the country has come to the market, the farmers have also taken out the goods according to their need. Now the farmers will also sell the goods only after the prices increase. Because the farmers have also seen the prices of Rs. 630/640 of last year. The daily arrival of cumin in the markets of production centres has also started decreasing. Except Unjha Mandi, the arrival in other markets has remained at 800/1000 bags. The average daily arrival in Unjha Mandi is 12/13 thousand sacks. Except Merta Mandi of Rajasthan, the arrival in Nagaur, Jodhpur, Nokha Mandi has remained 1000/1500 sacks, while in Merta the arrival is 3000/4000 sacks. As far as the rise is concerned, there is no possibility of much increase in prices at the moment. Because farmers have sufficient stock, as soon as the prices increase, the arrival in the mandis will start increasing. More rise in prices will depend on the export demand in the coming days.
Export decreased
For the last 4 years, there has been a decline in cumin exports. It is worth mentioning that during the year 2020-21, the export of cumin was 298423 tonnes, which decreased to 216971 tonnes in the year 2021-22. In the year 2022-23, the export was 186509 tonnes. In the year 2023-24 also, exports have come down to 165269 tonnes. Whereas it has been the lowest in the last 6 years. In the first month of the current financial year 2024-25, April, the export of cumin was more than last year but exports have decreased in May. According to the information received, the export of cumin in April 2023 was 17084.88 tonnes, which increased to 39182.42 tonnes in April-2024. But during the month of May, exports were affected due to the rise in cumin prices. In May 2023, the export of cumin decreased to 22885 tonnes as compared to the month of April. .