Spicing Up Success: Jeera Acreage Soars to 4-Year Highs, Unleashing Market Dynamics by Amit Gupta, Kedia Advisory
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Jeera cultivation reaches a pinnacle with a four-year high acreage surge in Gujarat and Rajasthan, driven by record prices and farmer enthusiasm. Gujarat witnesses a remarkable 160% increase, reaching 5.60 lakh hectares, while Rajasthan experiences a 25% boost to 6.90 lakh hectares. Despite recent price fluctuations and climate challenges, the global jeera market anticipates shifts in supply dynamics, with India poised for a potential bumper crop.
Highlights
Record High Acreage: Jeera (cumin) acreage hits a four-year high in the current rabi season, with farmers expanding cultivation in key producing states of Gujarat and Rajasthan.
Price-Driven Expansion: Record prices in the last marketing season prompted farmers to significantly increase the cultivation area, showcasing a strong correlation between market prices and acreage.
Gujarat Acreage: In Gujarat, jeera cultivation covers 5.60 lakh hectares, marking a substantial 160% increase from 2.75 lakh hectares in the previous year. This surpasses the normal jeera acreage of 3.5 lakh hectares in the state.
Rajasthan Acreage: Rajasthan sees a 25% increase in jeera cultivation, reaching 6.90 lakh hectares compared to 5.50 lakh hectares in the previous year.
Total Acreage: The combined jeera acreage in Gujarat and Rajasthan reaches over 12.50 lakh hectares, reflecting a significant 38% increase from the previous year's 9 lakh hectares.
Market Price Fluctuations: Jeera prices, which soared to ?62,000 per quintal in July, have experienced a recent decline to around ?30,000 per quintal, influenced by expectations of a bumper crop.
Climate Challenges: Challenges include lower water availability, fewer cold days, and concerns about fusarium wilt attacks on crops. Anticipation of higher incidence of blight and sucking pest attacks due to climate issues.
Gloal Trends: While India anticipates a potentially bumper crop, other major jeera-producing countries like China, Egypt, and Syria expect higher yields, impacting the global market.
Price Outlook: Modal price of jeera in the Unjha market stands at ?30,500 on January 11, down from ?44,000 levels in early December. Global cumin prices for March-April 2024 shipment are quoted at $3,300 per tonne for nearby destinations.
Conclusion
The surge in jeera acreage signals a promising era for spice enthusiasts and the agricultural sector alike. Record-high cultivation, spurred by market forces, showcases the resilience of farmers in adapting to price dynamics. While challenges like price fluctuations and climate concerns persist, the global market anticipates the impact of India's increased production on jeera prices and trade dynamics. The future holds exciting possibilities for the jeera industry, with the potential for India to play a pivotal role in shaping global spice markets.
