20 percent increase in spice products increasing income in agriculture sector

- Commodity Current - Jayavadan Gandhi

Last week's announcement of the bankruptcy of two major US banks and reports that the banking crisis in Europe is in a serious state, especially in the bullion and crude oil commodities, has been a huge mess. Due to the banking crisis, crude oil prices fell to a 15-month low of $65 with a seven percent decline in the market. Due to the recession in the year 2008, the crude oil market collapsed to thirty dollars at that time. Even now, as the crude oil market continues to deteriorate due to the recession, rising inflation in the US and declining consumption due to the banking issue, the chances of further downside are still high. Crude oil prices in the Indian market are also at a low level around Rs 5500 per barrel.

Meanwhile, after various organizations in the spice industry recently announced various forecasts regarding the production of cumin, fenugreek, fenugreek, isabgol, etc., in the joint meeting of the Mustard Oil Producers Association and Oil Industries and Trends held at Jaipur last week, especially Raidani. Concerns were expressed due to the market slipping below support prices. In which the ban on Raida futures has been lifted and the new futures have been started. SEBI had closed Ryda futures running on Agri Commodity Exchange NCDEX in December 2021. At that time, due to speculative activities in Raida, prices in Raida futures rose to an all-time high level of around 9 to 10 thousand. Sebi banned Rayda futures with immediate effect to control inflation. Raida production in the country was around 109 lakh tonnes in rabi season last year. Which is expected to be around 113 lakh tonnes in the current season and the average of around 119 lakh tonnes taking Carriford goods into account, as the new incomes started in the market, the market is currently lower than the support prices around 5000 to 5200.

In the last week, cumin and coriander fell by 20 percent and turmeric by 19 percent due to income pressure in the spice futures market. Turmeric market was at the level of 8200 in January, it has now come down to around 6600. It is worth mentioning here that in November 2010, turmeric contracts were at an all-time high of 16,300. In Coriander, the market, which reached a high of 8500 in January due to the pressure of production over the last five-six months, has now broken down to a low of around 6800. The prices have fallen by 20 percent in the last two months. Coriander prices were at a high level of 13400 in June-2015.

As of today, the prices of cumin seeds were also at a significant high level of Rs 36,800 per quintal in January. Subsequently, prices fell 20 percent to 32,800 to 33,000 in the last two months on reports of a 25 to 28 percent jump in production. Nowadays, there is increasing pressure on the prices in agricultural markets, especially in the vertical market, with incomes exceeding 45 thousand sacks of cumin. For some time now, cumin futures have been running in a range-bound condition around Rs 295 to Rs 325 per kg.