Amidst a dichotomy of heavy rains causing floods in certain districts of southern Gujarat and a significant deficit of rainfall in the state for August, the cumin market stands influenced by these uncertain conditions. This, coupled with recent sluggishness in purchasing, is expected to confine the movement of cumin within a narrow range in the upcoming period.
Constantly updated insights into cumin’s price shifts provide valuable guidance for traders. Southern Gujarat experienced inundation due to heavy monsoons in areas like Dwarka, Navsari, Surat, and Dhoraji. Surprisingly, the state is grappling with approximately 90 percent less rainfall than the norm for August. Moreover, recent fluctuations have contributed to limited farmer selling, with Unjha’s cumin arrival seeing a mere 1-2 thousand bags. Consequently, the local wholesale grocery market observed cumin’s price dip reaching $7,74/7,98 thousand per kg.
Farmers have chosen to withhold their crops due to the recent price slump. Key factors impacting the cumin market include the March rains severely damaging the crop, primarily in Rajasthan. This damage contrasts with cumin activity in Unjha, which maintains engagement with traditional importing nations, including Bangladesh. However, higher-than-normal prices have curtailed procurement from these nations. Sea freight rates have surged, hindering cumin exports and impacting other significant commodities. Afghanistan and Iran, joining Türkiye and Syria, are beginning to pose competition as cumin producers, altering global dynamics.
Although Türkiye and Syria jointly produce around 35 thousand tonnes of cumin, their quality differs from Indian cumin, being lighter. In the initial two months of the current financial year 2023-24, cumin export surged by 68 percent to 42,988.50 tonnes, yielding an impressive 205 percent income growth. This starkly contrasts with the previous year’s 25,603 tonnes. Consequently, according to market analysts, cumin’s movement is poised for a limited scope in the foreseeable future.