The recessionary atmosphere prevails due to lack of demand against high planting in cumin

Ahmedabad / Unjha, Ta. Thursday, November 26, 2020

With the onset of cold season after a good monsoon season, traders are worried that the recession is likely to intensify due to the steady decline in global demand due to the epidemic.

After Diwali, cumin futures are likely to see the lowest prices of cumin this season as the prices are going down by Rs 10 per kg as well as spot prices.

Nowadays, as the cold season is gaining momentum and the monsoon is also good, the cultivation of sun crops is increasing significantly. Due to which, most of the commodities including chickpeas, rye, guar, cumin are experiencing a recession and the agricultural markets are witnessing a sluggishness.

Cumin futures fell to Rs 15 per kg during Diwali and have plummeted to around Rs 12 in a decade. Volume in cumin futures has also come down to around 30 tonnes in December and around 200 tonnes in January.

The average price of cumin is currently hovering around Rs 500 per ounce, with the possibility of the lowest price after many years of Rs 500 to Rs 2,000 being discussed in the business community. Due to lack of demand for cumin, income and trade have come down to barely 6,000 to 7,000 sacks.

The mango forward stock in the cumin market this year is estimated at 15 to 20 lakh sacks.

Corn exports have been hit hard by declining demand from various countries, including China, due to the impact of corana against increased cumin cultivation. In addition, as the local demand for cumin is declining, the selling pressure is currently higher than that of cumin.

Cumin futures are seeing two and a half to three times the number of sellers than buyers. Due to which, the move of speculators in cumin futures has become controversial. Speculators' attempts to raise cumin futures continue to fail.