Jeera exporters hopeful after rains in Gujarat, Rajasthan

KOCHI: Good rains in parts of Gujarat and Rajasthan have raised the hopes of jeera exporters, who are facing intense competition from Syria in the world market.

Jeera is the second-largest exported single spice from India fetching over Rs 1,800 crore last year. Jeera prices had escalated by 60 per cent a couple of months ago on supply shortfall following untimely rains and a decline in sowing.

The prices have cooled a bit but are still at a higher level of Rs 170 per kg compared to last year. But now, with monsoon arriving on time and the jeera growing regions receiving good showers, the exporters are expecting a fall in prices in the coming weeks. Gujarat and Rajasthan are the principal jeera growing regions in India.

"The rain has been good in Saurashtra region and it has triggered a selling pressure. If it spreads to other regions too, then supply will increase pulling the prices down," said Akshay Patel, director of a major exporting firm DA Patel.

Unseasonal rains during February and March caused significant damage to the crop during the harvest resulting in 25 per cent of the crop getting affected. According to Vishidha Vijayakumar, analyst of Geofin Comtrade, the country’s jeera production is calculated to be around 2.84 lakh tonne in 2014-15, compared with over 4 lakh tonne in the previous year.

Lower prices of jeera had led to a decline in sowing of the commodity last year.