Why jeera prices are shooting up in wholesale markets

Source: The post is based on the article “Why jeera prices are shooting up in wholesale markets” published in Indian Express on 23rd June 2023

What is the News?

Over the past few months, Jeera (Cumin) prices have experienced an unprecedented surge.

What is Jeera?

Cumin seeds, also known as jeera, are widely used to temper food and enhance its flavor in a variety of preparations. 

These dried seeds are of the herb Cuminum cyminum, a member of the parsley family. 

They have numerous health benefits and are commonly used in Asian households to fight off stomach woes, soothe the digestive tract, relieve nausea, bloating and constipation. 

In fact, they are routinely used for digestive efficiency and health but cumin seeds are also used as an adjuvant therapy along with oral medication in people with Type 2 diabetes.

What are the major producers of Jeera?

India accounts for some 70% of the world’s production of this seed spice. Other countries such as Syria, Turkey, UAE and Iran make up the balance 30%. 

The top export destinations of India’s Jeera include China, Bangladesh, US, UAE, Pakistan, Saudi Arabia and Turkey.

Which regions in India cultivate Jeera?

Jeera is an extremely weather-sensitive crop. It requires a moderately cool and dry climate sans any humidity, which is conducive to fungal infestation during the crop’s flowering and seed development stages. 

That naturally limits the area of cultivation to Saurashtra, Kutch and the northern parts of Gujarat and adjoining districts of western Rajasthan.

What are the reasons for the rise in Jeera prices?

Supply-demand imbalance: Arrivals this year (the marketing season for Jeera begins from mid-February and peaks in May) have been half of the demand. It has led to traders laying their hands on whatever is coming to the market and jacking up prices in the process.

India’s jeera production is meant for both its domestic market as well as for export. Demand for Jeera in countries has gone up this year as hotels and restaurants are reopening after long-drawn Covid-19 restrictions. 

– Hence, the potential for price volatility is obviously higher in a commodity where there is both domestic and export demand.