The world of spices has its fair share of superstars, and cumin is undoubtedly one of them. However, the latest buzz in the cumin market is its flavor and its skyrocketing prices. The wholesale price of cumin has hit an all-time high due to low arrivals and buying by stockists, including exporters.
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But why are farmers still reluctant to sell their crops?
The main reason for the low arrival of cumin is the damage caused by the March rains, especially in Rajasthan, one of the significant cumin-producing states. Despite good monsoon rains in Gujarat and Rajasthan this year, the private weather service, Skymet, has predicted below-normal rainfall for the year 2023 monsoon, adding to the gloom. With farmers holding on to their crops, the supply chain is disrupted, and the prices continue to soar.
Although major cumin-producing countries like Turkey and Syria have lighter quality cumin, Indian cumin has been the most sought-after, accounting for a significant portion of the global cumin market. However, Afghanistan and Iran are emerging as potential competitors.
Challenges
The high sea freight rates and lack of export of cumin, along with other commodities, have added to the challenges faced by the Indian cumin industry.
The recent reports of good procurement in Unjha for two consecutive days provide some hope, but the industry still faces significant challenges. Thus to muster things, the cumin market is expected to remain firm due to the lack of a substantial increase in arrival.
The cumin prices were recorded at $5,83 per kg FOB.
