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Jeera price surges 72% year-on-year to record high, Retail News, ET Retail

Jeera price surges 72% year-on-year to record highJeera prices have surged an unprecedented 72% year-on-year to a record high because of lower production of the spice in the country, partly because many farmers shifted to more lucrative commodities.

The low yield in India will affect the global prices as the country is the largest producer of jeera or cumin in the world, said traders.

Prices of the commodity hovered over Rs 215 per kg in April at Unjha mandi in Gujarat, which records the largest volume of trade.

Jeera prices are at a lifetime high this year, said Arvind Patel, vice president, Agricultural Produce Market Committee (APMC) Unjha.

A CRISIL report said “prices in the mandi jumped 47% and 72% year-on-year in March and April (1-23), respectively”. “Prices in Unjha mandi have been increasing from Rs 180 per kg levels in March to about Rs 215 per kg this month,” it said.

Last year, jeera prices were around Rs 120-125 per kg.

“Unjha mandi in Gujarat, which accounts for 40% of India’s cumin arrivals, witnessed a 60% on-year decline in arrivals in March 2022. While arrivals for April (1-23) show 38% increase on-year, it is on a low base of last year where there were no arrivals in the second half of April amid the pandemic,” said the report

Total cumin output is estimated to have declined about 35% year-on-year to 558 million tonnes in 2022.

The main reason for the low yield and low acreage under cultivation is that during the cumin sowing period (October-December 2021) farmers shifted to gram and mustard whose prices were higher than that of cumin.

Secondly, excess rainfall in the key cumin belts of Dwarka, Banaskantha and Kutch in Gujarat, and Jodhpur and Nagaur in Rajasthan increased the probability of wilt attack, preventing farmers from sowing the crop.

India accounts for 70% of the world’s cumin production and is also the largest exporter, exporting 30-35% of its production.

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