JEERA

Jeer Sep contract at NCDEX rose by 1.2% on strong export demand and weak arrivals in the physical market. Lower crop output hopes in Syria and Turkey also boosted the sentiment. Weak arrivals in the physical market also supported the market, arrivals have come down to about 4,000 bags from about 7,000-8,000 bags last week.

India exported about 6,500 tones in April-May, compared with 2,180 tones a year-ago. due to strong demand on hopes of lower production in other major producing countries like Syria and Turkey. Cumin seed or jeera exports from India, the largest producer and exporter, rose 8% to 28,000 tones in 2007/08, the Spices Board said last. India exports jeera mainly to Middle East and European countries.

India’s jeera production in 2008 is likely to be about 2.5 mln bags, from 1.5 mln bags last year, due to conducive weather and increased area under cultivation. The carry over stocks were also less this year at about 200,000 bags of 70 kg each, compared with 1.2 million bags a year ago.

Good jeera sowing had also raised expectations of a bigger output in the next year, pressuring prices down from every rally.

India is the world leading producer & exporters for Jeera while Syria, Turkey and Iran also major Jeer producer in world market.

In India, the crop is sown in the month of October-December and harvested during Mar-May month. Gujarat and Rajasthan contributes to about 90% of the total production. While in other countries the crop is harvested in August and September.