Cumin Farmers Face a Conundrum Amidst Abundant Harvest
Despite this season’s cumin production surpassing last year’s figures, farmers are witnessing a decrease in market arrivals. As prices continue to decline, farmers have started holding back their produce, hoping for better rates.
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Supply Indicate a Shift in Market Conditions
In March, Gujarat’s markets were bustling with over 100,000 bags of cumin daily. At Unjha Mandi, the main trading hub, arrivals peaked at 55,000 to 56,000 bags. However, as prices began to fall, these numbers dropped to 50,000 to 55,000 bags, with Unjha alone now reporting just 32,000 to 35,000 bags.
Rajasthan Observes Similar Market Behaviors
Likewise, in Rajasthan, despite higher production rates than last year, market arrivals have halved. Initially, markets like Merta and Nagaur saw 8,000-10,000 bags, which have now plummeted to 4,000-5,000 bags due to the downward pressure on prices.
Price fluctuations Influences Farming Decisions
Last year’s high prices encouraged extensive cumin planting, supported by favorable weather, leading to a significant increase in production. This surge resulted in more than 100 million bags hitting the market, dwarfing last year’s 55 to 60 lakh bags. This abundance has directly contributed to the current price drop.
The beginning of April 2023 saw cumin prices in Unjha Mandi ranging from $4,08 to $4,80 per kg. By July, influenced by strong export demand and the previous year’s weak production, prices skyrocketed to a record $7,50 to $7,56 per kg. This peak in prices led to increased imports from China, which in turn helped stabilize the market for a while.
Exports Reflect Changing Market Conditions
Nevertheless, the abundant sowing reported at the end of last year initiated a decline in prices from November-December, a trend that persists. Currently, prices hover around $2,52 to $3,48 per kg, with little hope for recovery in the near term.
In the export arena, last season’s high prices dampened foreign buyers’ interest, leading to a slump in shipments. However, there was a slight uptick in January 2024 exports, which recorded 14,094 tonnes, compared to 9,325 tonnes in January 2023.
A Call for Strategic Market Interventions
The oscillating cumin market presents a complex challenge for farmers, who are caught between the high costs of production and fluctuating selling prices. As the market adjusts to these new realities, strategic interventions by government and trade bodies will be crucial to stabilize prices and protect farmer incomes. This approach will ensure that the backbone of the cumin supply chain—the farmers—remain resilient in the face of adversity.
