Jeera that had witnessed a bull run betting on export orders until the middle of last month is on the decline now with the improved rain in growing areas.
In the last three weeks, the spice has dropped by over 10 per cent. The decline in prices is despite arrivals dwindlling by one-third during the period as farmers are unwilling to sell their produce at lower prices.
Jeera is a rabi crop and good rain currently in Gujarat, which is the main producer, is expected to improve soil moisture. This, in turn, has brightened prospects of a better yield.
Exporters are also avoiding buying at higher levels and waiting for the prices to correct. On the export front, supply concerns from Syria and Turkey still exist. Expectations are that export orders may still be diverted to India from the international markets due to cheaper availability.
Jeera prices in the international market of Indian origin are being offered at $2,800-2,850 a tonne (c&f). Carryover stocks of the spice is pegged at 7-8 lakh bags compared with 4-5 lakh bags a year ago.
Although good rain and slack export demand are pulling down prices, jeera is likely to rebound as there are limited stocks with Syria and Turkey.