Indian Cumin Prices to Be Increased by Diwali Festival

Mintec Global
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The primary reason for the boom in the fundamentals of cumin is due to India becoming the major of not sole supplier of the spice in the world. According to the market experts, the late onset of monsoon will also delay the cycle of Kharif crops. Due to this, the arrival of the new season crop will be delayed.

Production of cumin from Turkey and Syria in July-August every year comes into the market and affects the export of Indian cumin. However, the situation is different this year. For both the countries, the production is nominal. Instead of exporting, Turkey imported 40 containers of cumin from India.

Currently, Turkey is selling cumin in the market by mixing the spice bought from India with the local yield at $4,50 per kg.

The earlier assumption was Afghanistan would produce between 13 and 15 tonnes of cumin, but now the production is reported to be about 5 to 7 tonnes. The result is Afghanistan is left with no cumin, and they cannot supply to the international market. The situation is the same in Iran; once again, the price is not spoken since most of the spice is bought by Japan. On the other hand, India is selling cumin for between $3,10 and $3,20 per kg in the Gulf countries, Pakistan and Bangladesh. The spice prices are $3,50 and $3,60 for European countries and America, respectively.

The production of cumin in the domestic market was estimated to be 5,4 million bags. But due to unfavorable weather, the production of cumin has been only 4,5 to 5,0 million bags with 2 million bags of carry-forward stock.

Thus, there is an estimated shortage of 1 million bags by the end of the season, which will eventually help the price increase.

It has been reported that the fundamentals are strong for cumin seeds. This can increase the price of the spice by Diwali to reach $3,40 per kg.

The Cumin seeds grade A prices were recorded at $3,11 per kg FOB.