China, the largest importer of cumin from India, has slowed down its spice demand due to pesticides, malathion, and carbon-sulfur. In addition, the increasing price of cumin has also dampened the interest of overseas buyers.
Current Scenario
Compared to last year’s price of $1,57 per kg in April Gujarat and Rajasthan, the rate of cumin increased by 64 percent for the same quality to reach $2,63 per kg during the same time.
Dealers have reported that the spice export has been a week for the last three months, and the shipment has decreased to 45,000 tonnes.
However, there was a bit of ease in the last few days, and experts believe there can be some improvement in the buying from June onwards.
The Federation of Indian Spice Stakeholders released its data about the cumin export. In 2021 the export of cumin lowered by 13 percent to 221,6 thousand tonnes compared to 2020s 254.8 thousand tonnes.
The export last year declined as the follows:
- 50 percent in October
- 48 percent in November
- 56 percent in December
The impact was felt after China reduced its import due to pesticides.
India exports 52 to 55 percent of the cumin it produces. However, from 2021-to 22, the cumin production is expected to decline by 37 percent since both the major producing states, i.e., Gujarat and Rajasthan, have decreased their production. As a result, the overall decline is about 37 percent, from 478 thousand tonnes to 301 thousand tonnes.
The overall acreage has been reduced by 28 percent. Also, unfavorable weather condition has declined the yield by 12.7 percent.
As a result of the low production, pesticide-free cumin availability is deficient. More consuming countries like Morocco, Saudi Arabia, Egypt, and China are pushing for pesticide-free cumin, making the commodity’s export a challenge. Currently, only 31 countries in the EU are not demanding pesticide-free cumin, but it can change anytime.
Reports state that China buys about 60 to 70 thousand kg of cumin a day and hasn’t hit the market yet due to insecticides and pesticides. The other buyer of Indian cumin is Bangladesh, but it fulfills its demand from Afghanistan due to the high price of Indian cumin.
The high price also makes domestic and international purchases challenging, with stockists no longer interested in filling up the inventory but rather making the purchase need-based.
In the Unjha market, the price of cumin increased from $2,32 in March to $2,83 per kg around mid-April. Later it decreased further to $2,64 per kg.
Exporters of spice state that the high price with low demand has been a concern. However, with a bit of slowing down in the rates, the buyers are showing interest. But the sluggishness is still a matter of concern.
Cumin export to China is allowed from January this year with a clear analytic report from the Spice Board.
Pesticide-Free Cumin Future
Currently, pesticide-free cumin is grown in the dry regions of Barmer and Jaisalmer of Rajasthan. However, with the increase in the demand for pesticide-free cumin, the South Asia Centre for Biotechnology is implementing an Integrated Pest Management (IPM) program to produce pesticide-free cumin seeds in Jodhpur Rajasthan.
The founding director of this organization Bhagirath Choudhary says that about 15-16 thousand tonnes of IPM cumin seeds are procured annually by the world’s largest spice companies directly from the farm gates of villages and small villages of Rajasthan. Each lot is tested for pesticides from NAVL-accredited laboratories before commercial purchase at a premium of about 20-25 percent over the market price.
Price Trend
Cumin A Grade 99% Pure
| Date | Price |
| May 16 | $2,90 per kg FOB |
| May 11 | $2,87 per kg FOB |
| May 09 | $2,89 per kg FOB |
| May 03 | $2,92 per kg FOB |
| April 28 | $2,95 per lg FOB |