While Coronavirus in China is creating a huge hue and cry across the world impacting the global socio-economic scenario, Indian Agri-market gets deeply influenced by the sudden closure of its neighbouring state’s market. As per the report, Jeera (cumin seed) prices in spot markets witnessed a sudden fall of over Rs. 1,500 per quintal or close to 10 per cent in a month. As per the sources, the sudden fall in the spice commodity is because of the coronavirus outbreak in China, which is considered as the largest buyer of the spice commodity from India.
Sudden Slowdown on Spice Commodity
As per the Business Line report, Spot jeera prices on Thursday were quoted at around ₹14,500-14,600 per quintal at Unjha markets, which is sharply down from ₹16,062 quoted on January 15.
Recorded as Four-year low
In futures, jeera prices hit a four-year low of ₹13,830 a quintal for March contract on NCDEX. The commodity had hit a lower level of ₹13,060 a quintal four years ago in January 2016.
“China is expected to buy about 50,000 tonnes this year on account of increased consumption. This year, the trade was excited because of our attractive prices and hoped that the Chinese demand would increase. The coronavirus definitely has caused a dent in demand. Usually, the Chinese visit personally to choose and verify the quality of their order. But now, due to travel ban and virus fears, it is going to be challenging for them,” Sailesh Shah, Director, Jabs International, one of India’s largest spices exporters, told BusinessLine.
Higher Production of Zeera
As per the report, favourable climatic conditions and improved water availability following good monsoon rains had brightened the prospects for jeera. Farmers in the top growing States of Rajasthan and Gujarat expected about 25-30 per cent higher yield leading to a larger crop this year.
