Cumin Market Fluctuations
In recent weeks, the wholesale price of cumin in Unjha has increased significantly by approximately one thousand rupees. This increase has encouraged farmers to bring more of their crops to market, raising concerns about potential profit booking and selling in the near future. This article explores the recent trends in cumin arrivals and prices, examining the factors influencing these market movements.
Recent Price Surges and Increased Arrivals
Cumin prices in Unjha, a central trading hub, have surged recently. The wholesale price jumped, and this sharp increase followed a prior rise. As a result, cumin arrivals have also risen, with current arrivals reported at around 32-35 thousand bags. This influx is a response to the price hike, as farmers are more motivated to sell their stock at higher rates. Cumin sowing in Gujarat has more than doubled compared to the last season. Initially, it was estimated that sowing would increase by about 25 percent. However, the actual increase has far exceeded expectations. This substantial rise in local wholesale grocery market sales has pushed cumin prices up.
International Demand
China, a significant buyer of Indian cumin, has been purchasing based on the fluctuating prices. Recent heavy rains and floods in China have raised concerns about potential crop damage, which could increase China’s demand for imported cumin. Additionally, Türkiye and Syria, also major cumin-producing countries, are expected to begin harvesting their new crop in the latter half of this month or early next month. Afghanistan and Iran are emerging as new competitors in the global cumin market, adding to the complexity of international trade. In the first 11 months of the recently concluded financial year 2023-24, India exported 1,32,019.06 tonnes of cumin, a decrease from the previous year’s 1,67,052.75 tonnes. Despite the reduced export volume, the higher prices have resulted in increased revenue. This highlights the importance of price trends in the cumin market and their impact on economic stability.
Challenges and Future Outlook
The recent price increase and subsequent rise in arrivals have sparked concerns about profit booking and selling. Farmers and traders may seek to capitalize on current high prices, leading to potential market volatility. Additionally, the competitive market with new players like Afghanistan and Iran, along with the existing significant producers, will influence future prices and supply.
The cumin market in Unjha is experiencing significant fluctuations due to a combination of increased production, higher prices, and shifting international demand. Thus, understanding the interplay of local and global factors will be crucial for understanding the cumin market effectively. By staying informed and strategic, exporters can better position themselves to thrive in this cumin market.