In a notable turn of events, cumin seed prices have undergone a substantial rebound in the agricultural produce market committees (APMCs) of Gujarat, marking a significant recovery from a recent period of decline. The average price for cumin seeds has surged to approximately Rs 30,000 per quintal (equivalent to Rs 300 per kg), representing an impressive gain of around Rs 10,000 within just one week.

The primary catalyst behind this price recovery has been attributed to astute selling decisions made by farmers. Faced with prices below the cost of cultivation, farmers strategically withheld their produce from the market, leading to a reduction in overall supply. This reduction in supply, coupled with sustained demand for cumin seeds, created a conducive environment for price stabilization and subsequent upward movement.

One of the key market indicators, Unjha APMC in Mehsana, which is renowned as the world’s largest wholesale market for cumin seeds, witnessed a significant price correction. Prices had dipped to approximately Rs 20,000 in mid-April from an average of Rs 25,000 in the preceding months. However, the market dynamics shifted as farmers stood firm on price negotiations, ultimately leading to the current price recovery.

Export demand has also played a pivotal role in supporting domestic cumin seed prices. Overseas markets have shown a sustained interest in Indian cumin seeds, with exporters fetching an average rate of Rs 31,500 per quintal. This robust export demand, coupled with increased export volumes compared to the previous year, has contributed to the price cushioning observed in the domestic market.

While the recent price surge is a welcomed development for farmers, industry experts remain cautious about predicting long-term trends. Market volatility continues to be a factor of concern, with uncertainties stemming from factors such as production levels, global demand fluctuations, and geopolitical influences.

The cultivation landscape has also witnessed significant shifts, particularly in Gujarat and Rajasthan, the primary cumin-producing regions of India. Gujarat saw a substantial increase in the area under cumin cultivation, reaching 5.61 lakh hectares in the 2023-24 Kharif season compared to 2.75 lakh hectares in the previous year. This surge in cultivation area was partly driven by the record-high prices that peaked around Rs 65,000 per quintal in June-July 2023.

Rajasthan, with its extensive cumin acreage, also experienced an uptick in cultivation area, reflecting broader market trends across key production regions.

In conclusion, the recent recovery in cumin seed prices underscores the intricate interplay between supply dynamics, export demand, and market sentiment. While farmers and traders welcome the price resurgence, ongoing market volatility and external factors necessitate a cautious approach towards long-term price predictions and market outlooks.

Source: Indianexpress.com