Unjha traders hoarding jeera to hike prices

AHMEDABAD: Anticipating better price realisation, jeera (cumin seed) traders in Unjha are now largely hoarding stocks. After a fall in jeera prices to Rs 1,800 per 20 kg, traders have started hoarding the stock hoping for prices to cross Rs 2,000. “There are not many buyers and the traders too are not willing to sell at low prices,” said Unjha Traders Association president Pravin Patel.

Jeera production this year is expected to be around 12 lakh bags (each of 60 kg), while the carry forward stock is around 8 lakh bags. Industry experts say around 7-8 lakh bags is still lying with traders in their warehouses.

“There is good international as well as domestic demand but the traders are not ready to settle for lower prices,” said Unjha-based trader Haribhai Shah. With heavy rains in the last few days, transportation has been affected and high moisture levels have led to speculation of a further dip in prices.

Price of the average fair-quality jeera had increased to Rs 2,200 some time back and is now around Rs 1,800. “The price of average quality jeera was around Rs 900 last year. However, this year prices have already doubled.

Despite good demand traders are hoarding stock, expecting better prices,” said Paradigm Commodities head Biren Vakil. Last year, around 32 lakh bags of jeera were up for sale in the market with around 10 lakh bags of carryforward stock.

This year, international demand has been firm with good demand of average-quality jeera from Singapore, South Africa and Dubai. While average jeera is selling at Rs 1,800 per 20 kg, good-quality jeera is being sold at around Rs 2,200. Despite enough stocks, the demand for good-quality jeera is much lower compared to average-quality jeera.