As the trade awaits new arrivals of jeera or cumin seed crop later next month, prices of the spice have turned bearish in the futures market, paring the sharp gains made earlier this week.

A New Year holiday in China from January 28 to February 5 is also causing sentiments to turn bearish as export contracts are likely to be executed after the holidays.

The benchmark March futures on the NCDEX have already slipped by ₹650 a quintal to ₹18,300 on Friday after a short rally in the past couple of weeks.

Export prospects bright

Traders anticipate the jeera crop to be at the same level as that of the last year at around 45-50 lakh bags (of 55 kg each).

But the export demand is likely to be robust from countries such as Bangladesh, China and Pakistan.

Export sources revealed that Indian jeera suppliers will have an advantage over global producers, including Syria and Turkey, which are currently facing a supply shortage.

Price advantage

Indian jeera is quoted at $2,700-25 per tonne in the international market, much lower than Turkey’s jeera, which is quoted at around $3,200.

“We do not see the jeera crop being lower than last year. But looking at the overseas prospects, exports should be higher than last year.

However, as Chinese demand has slowed because of the festive holidays there , We can see a reverse trend from here onward with prices lower in the near term,” said Vjay Joshi, an exporter from Unjha.

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