Bumper crop to extend India's jeera dominance; exports may touch over 1 lakh tonne

KOCHI: India's dominance in the global market for jeera (or cumin seeds) looks set to extend beyond the current year as a bumper crop has been predicted for the next year.

Jeera exports are expected to touch a new high of over 1 lakh tonne with India having the advantage in the international market by virtue of it being the sole supplier.

Jeera exports for the six months ended September 30 have shown a 93% rise in quantity and value.

Yearly exports had been hovering in the range of 45,000 tonne to 50,000 tonne till 2011-12. Shipments touched 80,000 tonne in 2012-2013.

"Almost 70% of sowing has been completed. There has been a 10-15% rise in sowing area, which means the crop will be higher than it was in the previous season," said Vedika Narvekar, senior research analyst, Angel Commodity Broking. Last season, production was around 45 lakh bags (each bag of 55 kg). Gujarat and Rajasthan are the main cultivators of jeera. According to her, jeera prices could fall slightly from the current level of 125 per kg. But good overseas demand will prevent a steep fall. Prices would remain in the range of 122-134 per kg in the medium term.

Apart from India, the other major suppliers are facing difficulties.

" Syria has encountered political uncertainties while Turkey and China had a poor crop. China is buying from India as its production is not sufficient to meet its own requirement,'' said Deepak Parikh, partner of Kanu Krishna Corporation, a major exporter.

India's jeera is competitively priced at around $2,100 per tonne in the world market. "India's dominant position may continue till July when the next crop in Turkey arrives," he said. India harvests the crop around February-March. With a carryover stock of around 7 lakh bags, India's stock position will be comfortable in next year.

According to Geojit Comtrade, NCDEX has modified jeera contracts to accommodate more warehouses. Warehouses within a radius of 60 km of the delivery centre will be eligible for the delivery of the commodity.