Posts Tagged ‘Turkey’

JEERA………THE FLAVORING AGENT

Jeera is a flavoring agent of Indian food as well as commodity market. In India, Jeera is grown during the rabi season. India is largest producer, consumer and exporter of jeera. The country produces around 2 lakh tonnes of jeera. It contributes about 70% in the total world production. Rajasthan and Gujarat contribute more than 90% of the total production.

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Production Scenario in India

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In the current season year 2009-10, Jeera production is expected higher by 10-15% as compared to last year. India, world’s largest jeera producer, is expected to have a production of about 27 lakh bags (of 60 kgs) in the current season year 2009-10. In India, arrival starts in February. The peak arrival season runs from March to April and continues till early May. Currently the daily arrivals are around 24000-27000 bags. So prices are trading with downtrend bias.

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Arrivals Pattern in Unjha Market (Daily average arrivals)

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February to April – 25,000 t o 35,000 bags

May to August – 4,000 to 8,000 bags

September to November – 6,000 to 8,000 bags

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Domestic Scenario

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Despite a bumper yield in the current season year 2009-10, jeera prices are expected to go up by Diwali due to stronger domestic and overseas demand over next few months and lower carryover stocks than last year. Carry-forward stocks are estimated to be around 30000 tonnes. After end of April and early May the arrival would s l o w d o w n .

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H o w e v e r , currently the daily arrival s have fallen from 30,000 bags a week back to 20,000 to 22,000 bags. Currently jeera prices are ruling in the range of Rs 11000-12000 but due to steep fall in the carryover stocks, higher domestic consumption and increased buying by traders for export, which would push prices higher from coming month. Jeera futures are trading in contango. The most active NCDEX April contract Jeera futures on NCDEX are trading in the range 11200-11400 and May futures quoting above Rs 11600.

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International Scenario

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Jeera prices also depend on the crop situation in Turkey, Iran and Syria. After India, Syria is the next biggest producer with an average production of 30, 000 tonnes. These countries influence the world jeera prices significantly. Countries like Turkey and Syria are expected to harvest their crop only by July and export demand would likely to shift to Turkey and Syria due to their competitive lower prices in world market. This may affect the movement of jeera prices at some content.

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Export of Jeera

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India exports about 140 countries including Singapore, Dubai, the US and Brazil. Last year, about five lakh bags were exported. Indian exports of Jeera declining on account of stiff competition from Turkey, Syria and Iran. They are capturing our export market by offering Jeera at lower prices and bulk of their production is reserved for export purpose. Jeera exports are expected to 14% decline to 42500 ton in April-February 2009-10 as compared to 49500 ton in 2008-09. In value term, it is expected to 8 % decline to Rs 47001.25 lacs in April-February 2009-10 as compared to Rs 51356.33 lacs ton in 2008-09.