Indian cumin seed is drawing limited domestic demand but sustained export demand and low arrivals have limited price falls, Olam Spices & Vegetable Ingredients finds.
In its May spices report, released on May 19, the company indicated that arrivals had remained low for the last few days across major markets in Gujarat and Rajasthan.
“Domestic demand remains subdued. Stockist buying has come down on high price fluctuations in NCDEX (National Commodity & Derivatives Exchange) counters,” the company noted.
However, it added that export demand continued for premium purity stock and a decline in arrivals had limited the price fall.
“Even though exchange platform witnessed a downward trend in May, spot market remains range bound with only minor downward corrections,” the company observed.
Arrivals so far in May amounted to 9,050 tonnes in Unjha; and 550 tonnes in Jodhpur of uncleaned cumin.
Olam Spices noted that arrivals were comparatively low compared with the same period last year.
The company expects the bullish trend reversal in NCDEX counters to temporarily arrest the price rally in the physical market, as seen already.s
“Moving ahead, prices are likely to be steady for near term and are expected to trade firm in medium term due to steady demand with subdued overall supplies for the season,” it concluded.