Weekly: Cumin seed prices settle higher on strong fundamentals

Mumbai, February 20 (Commoditiescontrol) Cumin seed prices rose sharply in the spot markets and futures as well in the last week as the commodity is constantly gaining support from strong fundamentals. Cumin seed futures hit a fresh high on the NCDEX last week.

The crop-size is likely to remain low this year as sowing acreage has declined significantly, said a trade analyst.

A number of farmers opted to cultivate mustard instead of cumin seed this year in anticipation of higher profit margin.

Prices of cumin seed gained Rs 80 per 20kg or Rs 400 per quintal in the benchmark market of Unjha this week while Rajkot market witnessed a jump by Rs 165 per 20kg or Rs 825 per quintal in the prices of cumin seed in the week ended on Feb 18. Jeera futures rose over 6% last week on strong fundamentals.

Ajay Kedia, Director, Kedia Advisory said, “Area under cumin in Gujarat has fallen to 3.07 lakh hectares this year from 4.69 lakh hectares last year and production is expected to drop by 41% to 2.37 lakh tonnes as compared to last year's 4 lakh tonnes as per second advance estimates. “

Even in Rajasthan the acreage of cumin seed has dropped 30%, he added. According to government data, the exports of cumin exports have dropped 24% year-on-year to 1.74 lakh tonnes in April-December from 2.30 lakh tonnes in the previous year, said Kedia.

The production in Syria had fallen by roughly 25-30 % in 2021 on annual basis, due to political instability. Hence, there is scope of good export demand for cumin seed from India.

On last Friday, cumin seed futures for delivery in March ended Rs 550 or 2.55% up at Rs 22140 per quintal with open interest of 11,361. Low of the contract was Rs 21590 per quintal. Prices of cumin seed at futures rose over Rs 1250 or 6% last week.

(By Commodities control Bureau; +91 9820130172)