Weak global demand, lower yield likely to hit Indian jeera exports
Jasleen Kaur | The Dollar Business
Jeera (cumin) exports from India are expected to slide during the current financial year due to low quality yields caused by unseasonal rain as well as demand slump from major importing markets. India, one of the largest exporters of the spice, has been facing a price war in the international market due to surplus supply from other exporting countries like Syria and Turkey. Analysts attribute the down ward trend in the global price to distressed sale from troubled region of the Middle East, where fresh crop has already hit the market. Disrupted supply from within the country due to unfavourable weather during sowing season also added to the price fluctuation. However, Indian exporters hope that the prices will stabilize once the foreign stock from the new harvesting season is exhausted. “In the international market, Indian jeera is cheaper compared to those from other countries including Turkey and Syria. The new crop in Syria and Turkey is harvested. But with overall production in these countries being much lower than India, their stock levels get exhausted fast,” said an exporter. Production of jeera in China is also likely to affect India’s exports. “Last year, China imported 50,000 tonnes of jeera from India. But now there is no demand from China because of adequate production domestically,” Shailesh Shah, Director, Jabs International Pvt Ltd—a Mumbai-based export house, told The Dollar Business. According to Shah, the present slowdown in the global prices is a temporary phenomenon triggered by speculations. “The price also fluctuates because of speculation. Many a times, it has nothing to do with demand and supply. In India, people think if they are getting crops at lower price within the country, why they should buy from cargo at a higher price. The Export sector is doing well but speculations often lead to problems,” he said. Overall exports of jeera from India are estimated to be below 1 lakh tonnes in the current financial year as against last year’s shipment of over 1.5 lakh tonnes.
November 07, 2015 | 3:33pm IST.