Cumin Prices Fall On Profit-Booking

Cumin seeds prices continued to be volatile in the last two days due to anticipation of low output in February on the eve of new crop arrivals. The price of cumin seeds for February delivery closed at Rs 8,166 a quintal on December 27 on the MCX, down by 0.57 per cent from the previous day's close of Rs 8,213. The price of the near-month contract on the MCX too dropped by 0.45 per cent from Rs 8,062 on December 26 to Rs 8,025 on December 27. The fall in prices on December 27 is mainly attributed to profit-booking by traders. The sudden spurt in prices on December 26 is believed to have been triggered by the reports of a shortfall in the crop output as a result of fog in Saurashtra, which is set to hit the crop this year. Farmers are also anticipating rains in the region, which may result in a 20 per cent crop loss. This year, the country exported about 18,000 tonne of cumin seeds to Europe and the Middle East and exporters are hopeful of shipping another 2,000-3,000 tonne before the end of the financial year. But, next year, Shah projected less exports from the country owing to glut in supply from Turkey, Syria and Iran. Last year, Gujarat had produced about 60,000 tonne of jeera, while Rajasthan contributed 45,000 tonne to the country's total output of 135,000 tonne. With at least 30,000 tonne of carry-forward stocks this year and cultivation of excess cotton across Gujarat, the scenario for cumin seeds in the state has changed drastically this year. The world's consumption of cumin seeds - barring India - stands at 25,000-30,000 mt.