The bull run in jeera prices continued on improved overseas sales, thin supplies and output concerns over scanty rain in Gujarat, the country's top producer of the spice.
Due to the ongoing supply concerns from top producers _ Syria and Turkey — large export orders have been diverted to India.
The spot as well as futures settled 2.09 per cent and 5.74 per cent higher, respectively, on a week-on-week basis.
On the NCDEX, jeera for October delivery was quoted at Rs 17,555 a quintal (up Rs 140 from its previous level), while August and September contracts ruled at Rs 16,635 and Rs 17,135 respectively.
Expectations are that large export orders may be diverted to India from the international markets due to cheaper availability. Export demand from Bangladesh, Pakistan and other countries may support prices at lower levels.
Production in Syria and Turkey is being reported around 1,000 tonnes and 5,000 tonnes, lesser than expectations. Jeera of Indian origin is being offered at $2,900-2,950/tonne (c&f) in the international market, while Syria and Turkey are not offering their produce.
In the spot market at Unjha (Gujarat), jeera was quoted at Rs 16,463.65. Arrivals stood unchanged at 8,000 bags while offtake stood at 7,000 bags. Farmers are also holding back their stocks anticipating better prices in the coming days.
Production of jeera in 2011-12 is expected to be around 40 lakh bags as compared to 29 lakh bags in 2010-11 (of 55 kg each).
According to the Spices Board of India, jeera exports in April stood at 2,500 tonnes as compared to 2,369 tonnes in April 2011.