Jeera prices rally on back of robust domestic, export demand
Jeera prices are staging a rally due to robust domestic and export demand. Production is reported to be higher than last season’s but higher exports are seen supporting the market,traders said.
India is the world’s largest producer and consumer of jeera. India consumes 75-80% of the commodity produced whereas the other jeera-producing countries export most of the output.
Broking firm Angel Commodities reports India’s jeera output is set to touch 4,16,000 tonne for 2019, supported by a sharp jump in production in Rajasthan. This is about 9% higher than the previous year’s production. “NCDEX Jeera April futures closed higher for the fourth consecutive week due to steady improvement in new jeera crop. New season jeera is hitting the market which is now having low moisture and fetching fairly higher prices as demand is good from exporters and bulk buyers,” Angel report said.
The broking firm expects jeera futures to trade positive on improving demand from the bulk buyers for the new season crop. This season, there will be higher availability and exports’ demand will play a major role in prices movement, the report added.
Spices Board data showed international prices had softened a bit to $3.19 per kg from $3.31 in last month.For the year-ago period, jeera was seen trading at $2.87/kg.
Besides India, jeera seed is cultivated in Iran, Turkey and Syria mainly for exports. The new crop in Syria and Turkey is harvested during August-September. The harvest period in India starts around February-March. India’s jeera exports were higher for the past few years due to geopolitical tensions in Syria and Turkey. Angel also added export of jeera is up 20.8% year-on-year in January at 9,429 tonne, against 7,800 tonne last year, while for April-January, exports rose 24.75% to 1.46 lakh tonne , compared to last year.
Source :- Financialexpress.com