India: Will Cumin Prices Keep Soaring Further?

Last week Cumin prices kept moving up during the first two days. After that, the market was steady, and as per experts and reports, the price will keep moving up.

Current Scenario 

• The overall demand for the commodity across the country is good. Mills are putting in their demand for the spice too.
• There is a steady increase in the arrival of Cumin in all the spot markets across Gujarat.
• The new crop is expected to arrive in Rajasthan after March 15.
• The new crop coming into the market is currently of medium to low quality.
• The moisture content is still high in the high crops.
• The old crop arrival of good quality has decreased significantly despite being in good demand.
• The current price of Cumin is almost near to its decade high.

Factors Moving The Price Up 

• The news of the low yield of Cumin across India is expected to be only 40 to 50 percent compared to last year.
• There are reports of significant low crop production and yield production in Gujarat, India’s primary Cumin producing state.
• Factors that led to low yield are as follows:
  • Farmers shifted to cultivating other crops instead of Cumin as it did not fetch a reasonable price last year.
  • Unseasonal rain last year affected the standing crops and damaged them too.
  • The harvesting has slowed down due to the unseasonal rains, and the existing crop quality has been impacted too.
• As a result, the stockists increase their purchases and put them in cold storage. This is primarily because of the fear of the low arrival of new crops later in the season.

Prediction 

The bullish trend for Cumin will continue, according to market experts. However, some traders believe that this upward trend will eventually burst for the commodity as the year progresses. The difference of opinion among them leaves the buyers and us to play the wait and watch the market for Cumin.

Price Trend

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