Deficient monsoon triggers sharp rally in jeera prices by admin- Thursday, August 26th, 2021 08:03:14 AM
Rates up ₹2,000 according to quintal in much less than a month
Amid fears of a deficient monsoon, a sharp rally has spiced up jeera (cumin seed) costs within the past one month.
Jeera is a rabi crop grown in Rajasthan and Gujarat, and the soil moisture left by accurate monsoon rains holds the important thing for the good productivity of the seed spices crop.
Gujarat, the most important grower of the spice seed, has said fifty nine in step with cent poor rainfall till August 24. The key growing area of North Gujarat has 62 per cent rainfall deficiency. Similarly, foremost jeera developing districts, including Jaisalmer and Barmer, face a rainfall deficit, triggering drought-like situation in western Rajasthan.
At the Unjha marketplace, spot jeera expenses have surged with the aid of ₹2,000 or 15 in step with cent in less than a month from ₹thirteen,620 a quintal on July 30 to ₹15,four hundred on August 24.
The NCDEX jeera settlement for September transport were quoted at ₹15,470 a quintal inside the futures market, even as far-month contracts for October and November transport changed into quoted at ₹15,740 and ₹15,935, respectively, on Tuesday, indicating a firm outlook for the price.
So some distance this 12 months, prices have received by way of 20 consistent with cent considering that January 2021 stages of ₹12,960.
Delayed monsoon drives speculation
Trader assets attributed the rally in expenses to hypothesis as a result of delayed monsoon. The domestic call for is sluggish, export call for is constrained.
“The trade is hand-to-mouth as all of us is intently looking the fee movement. A lot of uncertainty is due to the erratic monsoon in growing areas. Current fees are the highest for this year, while we don’t have any clue of what the rate trend could be in following few weeks due to uncertain monsoon,” said Vijay Joshi, from Vijay Exim, an exporter in Unjha.
Unjha marketplace insiders cited that the rate trend is speculative, and there could be a correction if there is a good spell of rain.
“We suspect the costs may additionally correct without delay after an excellent spell of rain. Due to the not on time monsoon, there is a subject on the water availability for wintry weather crops. A appropriate spell of rain might convey some comfort for farmers in addition to quiet down the costs too,” stated a exchange source.
Arid sector crop
Jeera is a wintry weather crop specifically grown inside the arid zones of Rajasthan and parts of Gujarat. The residual soil moisture left by means of the best spell of monsoon rains play a critical role in the productivity of the seed spices crop, stated Bhagirath Chaudhary, Director, South Asia Biotechnology Centre (SABC).
SABC is imposing an incorporated pest control (IPM) mission of the Department of Biotechnology in cumin in Rajasthan, protecting hundreds of farmers in the region. Chaudhary said there’s a drought-like situation within the western districts of Rajasthan, wherein cumin is grown. The rainfall deficit degrees from 35-50 in step with cent in 5 districts. Inclusive of Jaisalmer and Barmer.
Chaudhary felt that the rising fee fashion augurs nicely for jeera as it is able to deliver back farmers’ hobby in the seed spices crop. Cumin prices touched a low of ₹12,000 in line with quintal this yr, evoking fears that farmers would pass away from the crop. “The market is factoring inside the scanty and erratic rainfall,” Chaudhry stated.
“Jeera requires much less rain. The acreage is not going to get affected and a clearer photograph will emerge in October,” stated S N Saksena, Director (Acting) ICAR-National Research Centre on Seed Prices in Ajmer.
According to the first enhance estimates, cumin seed production was pegged at eight.56 lakh tonnes at some point of 2020-21, decrease than the preceding 12 months’s 9.12 lakh tonnes. The region had declined marginally all through 2020-21 to 12.41 lakh hectares (lh) compared with the preceding yr’s 12.76 lh. Gujarat is the most important manufacturer of cumin, wherein manufacturing stood at 4.29 lakh tonnes in the course of 2020-21, even as in Rajasthan, the output of the spices seed crop changed into predicted at 4.25 lakh tonnes.