Cumin, coriander prices to stay high

Lower production and higher demand will keep the prices of cumin and coriander, two important seed spices, high in the short to medium term.

Cumin, or jeera, is the second-largest single spice to be exported from the country. It accounts for over 15 percent of spice exports. A major share of coriander output goes for local consumption, and it is one of the most favoured spices by curry masala companies.

The sowing of both these spices for the new crop to be harvested early next year has been less than the last season. On the other hand, overseas demand for cumin has picked up, after issues with China have now eased. As for coriander, domestic demand, post-Diwali, has remained strong.

China rider on cumin import

Cumin export received a setback as China stopped buying the spice, saying there was pesticide residue in the consignments. So, it decided to import only pesticide-free cumin from India two months back. China has emerged as the largest importer of cumin from India, accounting for around 70,000 tonnes a year.

The matter was taken up with the Spices Board by exporters. “China has now agreed to import cumin from India, if accompanied by a Spices Board certificate that consignments are pesticide-free,’’ said U Kartik, partner, Asian Spices. Cumin exports are expected to resume by January.

“We suffered export delays when the second wave of COVID-19 hit India. Again, the China problem affected exports. So, we are expecting exports to be lower than the previous year, though it is expected to pick up in the last quarter of fiscal year 2022,’’ said Jay Chandarana, CEO, Dhaval Agri Exports.

After a record export of almost 3 lakh tonnes, worth Rs 4,253 crore in 2020-21, cumin export dropped by 14 percent in quantity and 11 percent in value for the six months that ended in September 2021, from a year ago. The export for the period stood at 1,39,295 tonnes, worth Rs 2,051 crore.

“India’s main competitors in cumin export -- Syria and Turkey -- have already sold their produce, and Syria is facing internal problems. Hence, India is currently the main supplier in the global market,’’ Chandarana said.

The average cumin prices are around Rs 160 per kg now. “If the export to China picks up, prices may rise to Rs 175 per kg,’’ said Dipak Parikh, partner of Kanu Krishna Corporation.

Cumin sowing falls

According to Karthik, sowing for cumin has fallen by 30 percent in Gujarat and 25 percent in Rajasthan, the two main states growing the spices. “The main reason for area reduction is farmers shifting crop to mustard as its price went very high this year. Also, in the past three years, cumin prices have not shown any major jump,’’ he said. He expects sowing to continue till cold weather grips the states.

In 2020-21, cumin crop was down by 6 percent at 856,505 tonnes from the previous year. It is expected to go further down in the current year.

In the case of coriander, sowing in Gujarat is almost similar to last year’s but has declined in Rajasthan and Madhya Pradesh. The carry-forward stock from the previous year is also low. “It should be around 1 lakh tonnes, compared to around 1.40 lakh tonnes the previous year,’’ said P C K Maheswaran, partner, P C Kannan & Co.

The carry-forward stock got reduced despite a bumper production of 8,22,210 tonnes in 2020-21, a 17 percent rise over the previous year. This was because of a steep increase in demand after the second wave of COVID-19.

Coriander production depends on MP

Maheswaran said production and price of coriander in the next few months will depend on the crop in Madhya Pradesh, a major producer of the spice. Already the market is up by Rs 20 from a year ago, at around Rs 80 per kg, due to high domestic demand and low stock. “If sowing declines by 20 percent or more in MP, prices may shoot up. Otherwise, it will stabilise around the current level. But it will be higher than last year,’’ he said.

Meanwhile, the Federation of Indian Spice Stakeholders, based at Unjha in Gujarat, attended a meeting by Diwakar Nath Misra, joint secretary in the Ministry of Commerce and Industry earlier this month to discuss the issues concerning spices trade.

Among the demands made by the federation is the continuation of subvention of rupee credit interest subsidy, enhancement of RoDTEP reimbursed to spice exports to 5 percent from 1 percent, the setting up of a seed spices export promotion council and integrated pest management for spices.