Weak foreign demand pulls down jeera prices

KOCHI: Subdued overseas demand and better production have dragged down prices of jeera or cumin, in the last few weeks, but the industry is bullish that the prices will rebound as demand picks up. Jeera prices, which were hovering at Rs 172 per kg over a month ago, had dropped nearly 7 per cent as of last week. Jeera futures for June delivery was looking up and traded at Rs 164.25 on Monday evening on the NCDEX.

Uncertainty over the jeera output following prolonged dry spell and robust buying by China during April-May triggered hopes of prices touching Rs 200 per kg, traders said. "But now Chinese purchases have slowed down. China is estimated to have bought 20,000 tonnes at a high rate from India," said Dipakh Parikh, partner of Kanu Krishna Corporation.

Purchases from Gulf too are expected to slow down with the start of Ramadan. India had a better start for jeera exports this year as the crop prospects were better than anticipated. Absence of rains during harvest ensured that quality was good. Poor output, inferior quality and high prices had hit shipments in 2015-16.