GROUP

5
Jeera may firm up on High Demand, Low Rains

Ref: Economic times, dated: Oct 12, 2018

 India: Land of Spices

 Largest producer of Jeera

 Harvesting period of 4 months

 70%-30% export/domestic demand

 Accounts for 20-30% of total exports

Source: Jeera-A special report by Religare Retail Research

 Facts & Forecast…
  NCDEX showed a gain of around 8.5 per cent since early February to
March 18 in Jeera Demand
 In April on (NCDEX) rose 3.17 per cent to trade at Rs 18,410 a quintal
from March 18 to April 18
 In May gained 2.72 per cent at Rs 18,515 a quintal
 The overseas demand for Indian jeera is expected to increase as the
supply from other sources are limited and of poor quality. 
Rising Export Demand
China is one of the largest buyers of Cumin-Seed from India, accounting
for exports worth USD 407,724.64 

 Taste and Nutritional value 28 % increase in demand

 Quality

 Lower crop
 Global Trading Scenario

a) Shortage due to rains

S2 (Indian Jeera)
b) Quality of product Price /Ton
S1 (Countries like
Turkey Syria)
2500

2200

Quantity
Change in Pricing trend…
Jeera futures prices had crossed Rs 200 per
kg in August but then fell on profit booking
and subdued demand. Robust domestic
demand is keeping the prices at above Rs
190 per kg level now. 
 Factors Affecting Supply:
Analysis of Para 04: “JEERA MAY FIRM UP ON HIGH DEMAND, LOW RAINS:”

 Lack of Sufficient Rains in Gujrat and Rajasthan , the top

producers of Jeera.
 No Increase in the sowing area
 Increase in the Input Cost (Such as, Use of Artificial Irrigation
Methods), thus making the Supply Curve to Shift Negative.

PRICE

s2 s1
 Supply curve of the Cumin

p2 shifting negative (or towards the left)

p1

d1

q2 q1 QUANTITY
 PRICE
PRICE

SHIFT IN EQUILIBRIUM

 Since the demand is increasing and the supply is increasing the

price of the Cumin is bound to rise.
 Increase in the Input Cost (Such as, Use of Artificial Irrigation
Methods), also adds to the increase in the cost with rise in
demand.