Weekly Review: Improvement Likely In Jeera Prices

MUMBAI (Commoditiescontrol) - After the report of high production, the trade has been restricted in a narrow range while with the increasing arrivals, export enquiries were reported normal.

Bumper crop is expected due to good sowing in Gujarat and Rajasthan, But now there is a concern about the yield in Rajasthan which may affect production.

Federation of Indian Spice Stakeholders (FISS) has estimated 6.92 million bags of jeera production for 2017-18, as against 5.83 million bags in 2016-17.

In the last month, there was an increase of about 9 percent in prices due to weak arrival but due to weak buying, limited trade is being seen again in the market.

India exported 104,260 tonnes of jeera during April-October 2017, compared to 91,024 tonnes during the same period a year ago on the back of growing demand from China and Bangladesh. Although demand is still coming slowly from China and Bangladesh.

Prices may be supported by light demand in the spot market amidst limited supply. Export demand for jeera is expected to strengthen the existing level.

The supply may be reduced from other producing countries due to geo-political tension. Meanwhile, there is continuous rain in Syria which is positive for the Indian spice as it might affect the export.

Meanwhile traders are waiting for the monsoon. As per the India Meteorological Department (IMD), the southwest monsoon is expected to hit Kerala on May 29, three days ahead of its normal onset date.

Sowing of most of the spices generally starts after monsoon rains. The first advance estimates released by the Ministry of Agriculture had earlier showed that during the year 2017-18, spices production in India remained stable at 8.16 million tonnes.

India exported about 7.97 lakh tonnes of spices and spice products worth Rs 13,167.89 crore during April-December 2017, an increase of 20 percent in volume and four percent in Rupee terms. During the corresponding period in 2016, 6.63 lakh tonnes valued at Rs 12,607.46 crore was exported, a Spices board press release said. In Dollar terms,spices exports were pegged at USD 2041.23 million as compared to USD 1880.02 million, notching an increase of nine percent in value.

According to the technical chart, as down trend is being seen, June contract may touch lower level of 15,560 and 15,430. But low level buying may support prices and June futures may touch the level of 15,900 and 16,100.




(By Commoditiescontrol Bureau; +91-22-40015567)