Jeera futures break previous 36,000 as crop concerns grow

After a quick time out, jeera (cumin seed) costs are climbing up once again in the middle of unfavorable weather in the biggest growing area, Rajasthan, and parts of Gujarat.

The jeera growing areas in southern and north-western parts of Rajasthan in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer have actually gotten a fresh spell of unseasonal rains in the previous week, activating issues on the crop condition.

On the National Product and Derivatives Exchange (NCDEX), jeera futures for April expiration priced estimate as high as 36,455, whereas the far-month NCDEX Might agreement for jeera priced estimate above 36,600 per quintal in the middle of the fresh concern over the crop status.

The costs have actually gotten by about 45 percent because December 2022, from 25,085 a quintal. In the area markets at Unjha in north Gujarat, jeera estimate at 35,399 per quintal with arrivals hovering at 22,000-25,000 bags.

Jayantibhai Patel, a jeera trader from Unjha, stated, “The effect of the unseasonal rains will be felt primarily in Rajasthan, where the crop is still in fields or at the harvest phase. There is a possibility of crop damage to the tune of 15-20 percent in Rajasthan. Whereas in Gujarat, we do not anticipate a huge damage in the crop. However the quality has actually sufferred which is activating the upward rate belief.”

For the jeera crop, wet or cloudy weather condition affects the quality of the seed, which typically turns blackish, showing putridity.

Crop price quote.

In February this year, the Federation of Indian Spice Stakeholders (FISS) had actually launched a crop price quote for seed spices, predicting the jeera crop for 2022-23 at 3.84 lakh tonnes (69.96 lakh bags of 55 kg each), up 28 percent from in 2015’s 3.01 lakh tonnes.

FISS tape-recorded a boost in acreage by 12.9 percent in Gujarat and Rajasthan, while yields are anticipated to be greater by about 13.2 percent over in 2015.

Jeera crop in Gujarat was approximated to be greater by 22 percent at 1.41 lakh tonnes while Rajasthan crop was predicted greater by 32 percent at 2.43 lakh tonnes.

Nevertheless, for traders the lower stock positions and weather condition effect on the crop suffice to go bullish on the rate.

Market sources have actually approximated jeera crop at 60-65 lakh bags with a carryover stock of about 5 lakh bags. The costs, according to traders, might get more upside momentum as export need from China and other nations has actually been slack in current weeks.

Especially, Lok Sabha speaker Om Birla, who is likewise a member of Parliament from Rajasthan, had actually supposedly revealed issue over the crop damage due to unseasonal rains in the State.


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