Jeera prices may head for a new peak this year

KOCHI: Jeera or cumin prices are likely to hit a new peak this year owing to the robust demand and a shortfall in production. Prices are up 20% from a year ago, to Rs 172 per kg, but the industry expects a further increase due to the extended dry spell in the growing regions of Gujarat and Rajasthan.

“Jeera futures traded higher due to revival in demand from domestic and overseas markets.

Expectation of lower yield than projected earlier and prospects of rise in demand from overseas market may support further upside in prices,” said Vishidha Vijayakumar, research analyst, Geofin Comtrade. According to traders, total production in 2015-16 is likely to fall about 2.5 lakh tonnes from 3 lakh tonnes a year earlier. The arrivals may see a drop due to abnormally high-temperature since January.