Jeera exports to hit new this season despite rise in prices

KOCHI: India's Jeera (cumin) exports are reaching a new high even as prices have moved up in the local markets following unseasonal rains and production shortage. In volume terms, the exports – at 128,500 tonne for nine months to December – have already overtaken the total exported quantity of jeera in FY14.

The shipments have slowed down in the last couple of months with buyers waiting for the new crop. India became the principal supplier of jeera globally after a shortage of the commodity in other major producers like Syria and Turkey.

"With the crop failure in their country, China also bought large quantities from India, which contributed to higher exports," said Shailesh Shah, director of Jabs International, a major exporter. Jeera is the second-largest exported commodity from India among single spices, after chilli.

The year 2013-14 saw 1,21,500 tonne of jeera (valued at Rs 1,600 crore) shipped from India. Jeera prices are set for a steep increase in the coming months, a factor which could affect the margins of the exporters.

Low prices in the local market led to a decrease in the sowing area by as much as 40% in the main producing belts of Gujarat and Rajasthan. The unseasonal rains in February have also affected the quality.

"As a result, a bullish trend is likely to prevail. We are expecting prices to escalate to Rs 170 a kg by July," said Ritesh Kumar Sahu, analyst at Angel Commodity Broking. The April futures prices is around Rs 145 a kg at NCDEX, while the spot price is higher at Rs 152 a kg. The traders are holding the commodity anticipating a rise in prices later, Ritesh added.