Cumin Seed Likely To Dip On Crop Damage

Mumbai: Cumin seed (jeera) futures prices are expected to witness downward movement next week on heavy crop arrivals, analysts and traders said. Imports are also expected from Syria along with the domestic produce. On the National Commodity and Derivatives Exchange, futures for March and April delivery have gone up by 27 per cent in the last one month on fears of crop damage due to heavy rains in the growing areas and firm demand in spot markets. The May contract, trading in which commenced on February 10, has risen 24 per cent so far. Arrivals from Rajasthan will commence after Holi, which falls on March 4. Gujarat and Rajasthan are the leading producers of cumin seed. Overall, supplies are seen rising with imports of the commodity from Syria entering the markets this month. This time around the prices offered by Syria, one of the largest producer in the world, were lower than those in Indian markets, prompting the company to import. Heavy inflow of jeera is also expected to coincide with steady offtake in spot markets. Kotak Commodities has asked market participants to book profits in March jeera contract. Weather in Rajasthan is expected to return to normalcy in next few days, helping erase fears of crop damage, analysts said. Jeera prices were expected to come under correction on high inflow of crop arrivals but heavy rains in Rajasthan and Gujarat prompted traders to build long positions. Jeera being a delicate crop is susceptible to vagaries of weather. "After a short spell of dry weather, rains have resumed over Rajasthan.