Hike in Cumin price
Cumin is the second most popular spice in the world after black pepper. The future price of cumin has crossed USD 6,09 per kg. Since December 2022 it is gaining a hike like anything in the prices and it is double than before. The market at Unjha, Cumin hit a new high of USD 6,25 per kg. Compared to the last three years it has increased by 150%. An Ahmedabad resident, Shri Ketki Vaishnav says, “Jeera (Cumin) isn’t a large consumption item for us. But the prices have more than doubled over last year. This sharp price rise definitely pinches.”
Generally speaking, a pinch of cumin is enough for taste and in Indian tradition it is also used for its healing properties like indigestion, weight loss, cholesterol and inflammation. As the price is rising people will have to spend more money for a pinch of cumin.
Exporters don’t have any other option, but to buy at a higher price
Mr. Ajay Kedia of Kedia Advisory’s opinion is neither the consumers nor exporters are likely to cut down on their off-take. “Cumin isn’t an essential commodity, nor does it contribute to the inflation index. So while doubling the prices affects the consumers, the quantity consumed is not much. Second, on the exports front the entire pipeline is empty in global markets. And India is the only supplier at present, so the exporters are compelled to buy even at higher prices.”
We generally do not get agree with Kedia’s opinion that;
a) cumin is not an essential commodity
b) it does not contribute to the inflation index.
Because cumin is a commodity and it is part of the inflation and this is connected with a person who is on the ground level and it is connected to people’s kitchens.
Production of cumin has increased
The arrivals of cumin as of now have stood at about 0.129 Million Tonnes. According to the crop estimates by the Federation of Indian Spice Stakeholders (FISS), Cumin output is likely to be around 0.384 Million Tonnes for 2022 – 2023. This year’s production is up by 28% from last year’s 0.3 Million Tonnes. This is after the 12.9% increase in the acreage in key growing regions of Gujarat and Rajasthan. The yields were estimated higher by 13.2% over last year.
Also, the El Nino effect during the later part of the monsoon season is expected to further impact the prospects and hurt the sentiment of the cumin.
India might enjoy as the sole supplier in the global market
India is one of the major exporters of spices and the markets have been extremely volatile considering the geopolitical tension as well, which in turn, has driven up the demand and prices in the space. The other global suppliers, Türkiye and Syria, are likely to face uncertainty on crops, thereby leaving India as the sole supplier to the global markets at present. This is likely to further fuel the bullish sentiment for the seed spice. Premchand Motta is a spices expert and he suggested that he is looking forward for the upside momentum in the spice. He said, “Cumin will remain up and up as supply is restricted. Already good export business has been done. The outlook for cumin is good but profit booking will be seen.”
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