Record-breaking exports of spices worth $410 million during 2021-2022

- Commodity Current : Jayavadan Gandhi

In the year 2022, there have been huge ups and downs in the commodity market, especially in the agri sector. Cotton, guar seed-gum and spices have been in turmoil throughout the year. About 68 percent positive return has been found in spices, especially cumin. While 16 percent in turmeric and one and a half percent negative return has been found in coriander. Cotton and guar have also seen an average bullish trend. As the year 2022 is counting days to its completion, cumin prices are currently hitting record highs with red cholo booming. Heavy support for the bull has been at the end of the year as the demand for cumin improves as the lockdown in China is lifted. The production of cumin and turmeric is expected to decrease in the year 2023. While the production of items like coriander, cotton, rayado is expected to be high. During the year 2022, more than 400 crores of spices have been exported. This year, the export of spices to many countries including China, America, Bangladesh, Enchai, Thailand, Britain, Malaysia, Indonesia, Sri Lanka, Saudi Arabia, Nepal, Australia, Germany, Canada and Netherlands has been good. During the year 2018-19, 280 million dollars were exported and during the year 2019-20, 311 crores were exported. While during the year 2021-22 more than 410 million dollars have been exported. Cumin has been booming for the last one and a half months due to the fact that the production in cumin last year was less and now the planting of cumin in the next season is less than expected and there is demand against the shortage of cumin. Especially since the last fortnight of November, cumin futures jumped from 235 to 277 last week. If the current situation remains, with a few corrections, there is an expectation among traders that cumin futures will cross the level of 290 to 300. Even in the present market of cumin, as the prices reached a record breaking level of Rs 5500 per maund, a wait and watch situation is currently prevailing in the market. Due to high prices, 8 to 10 thousand sacks are traded in the standing market daily, with profitable sales. There are reports that cumin cultivation has decreased by 15 to 20 percent in Gujarat due to higher prices of other crops like coriander, raya, wheat as well as lower risk factor than cumin. However, cumin cultivation in Rajasthan is expected to remain unchanged as last year.

Parallel to cumin, the coriander market has also hit a high of Rs 8,800 with a jump of Rs 500 last week. Turmeric and castor market are in range bound condition of 7400 to 7500. However, cotton prices have crossed 1700. There is a continuous boom in cotton from the year 2021. At the beginning of 2022, cotton prices had crossed the 2000 level. The cotton market had fallen back slightly since September. As cotton prices in the country are about fifteen percent higher than the global market, imports have been hit due to the increase in fallows, due to which almost half of the mills are in a state of shutdown.

The guar gum and seed market has been bullish for the past two months. For the second month in a row, the guar seed market has reached the level of 6000 and the guar gum market has reached the level of 13000. A year or so ago, last October-November-2021, the prices of guar seed crossed the level of 7000. However, during the war, the market suffered a break due to reduced drilling. 80 percent of guar is exported from the country to Europe, Russia, America and Saudi Arabia.