Indian cumin seed prices have shown a bullish tendency of late, but profit bookings on electronic commodity exchanges have curbed the upward momentum in the physicals market, Olam Spices & Vegetable Ingredients noted.
On August 17, the company observed that Indian cumin seed prices had corrected down to INR6-8 (USD0.08-0.11) per kilo in the last fortnight.
Raw cumin seed (farm grade 90-92% purity) was traded at INR170-175/kg in the Unjha market, the report explained.
Olam Spices finds that there is no selling pressure and arrivals remain low at 100-120 tonnes a day even after the drop in prices.
Ready material is still fetching a premium of INR2-3/kg. Heavy rains in Gujarat and Rajasthan are also behind the low arrivals.
“Heavy rainfall across Gujarat and Rajasthan affected the crop arrivals as well as changed further bullish price sentiments in the market,” Olam Spices added.
The company reported that Syrian cumin seed exports have started and these will have a short term impact on Indian price sentiments and Indian cumin seed exports. Syria is said to have a crop of 15,000 tonnes as most.
“Even though better rain across growing tracts is improving ground water levels, which lead to better sowing prospects, low inventory levels until the next crop season, as well as farmer holdings for better price expectations and Unjha trader holding capacity, is likely to give support to the current price levels,” Olam Spices suggested.
The company predicted that stock reported in Gujarat and Rajasthan will last only until February and the opening stock next year is likely to be 50% down from that of this year.
Olam Spices gave the following price levels on the Unjha spot market:-
- Farm grade: INR175/kg
- Grinding quality 96% purity: INR182
- 98% purity Singapore machine cleaned: INR188
- 99% purity Singapore machine cleaned: INR190
- 99.5% purity Singapore machine cleaned: INR198
- 99.5% purity European machine cleaned: INR200
- 99.5% purity European sortex cleaned: INR204
- 99.5% European sortex cleaned and allergen free: INR212
99.5% IPM (integrated pest management) sortex cleaned: INR215