UPPER CIRCUIT: INDUSTRIES AGAINST ISABGOL PROMISES

- Commodity Current - Jayavadan Gandhi

Nowadays, the income ratio of farmer goods in agricultural markets is above the top level. In the market yards like Unjha and Gondal, with lakhs of sacks being traded, a fair-like atmosphere is being seen even in the heat of summer due to the presence of farmers-traders in the yards. Yards are booming with significant revenues of cumin, fennel, isabgol in Unjha market along with revenues of one and a half to two lakh bags of coriander in Gondal yard. Chana was hot last season. While this year coriander has emerged hot. Even in the case of Mavthas, despite the chances of reduction in harvest, due to the abundant production of goods, the yard is seeing a situation as if there is a glut of coriander goods. Pressure on coriander revenues has put a brake on the boom. In the current market, the prices of coriander are in the range of Rs 900 to 1800 per mane and the prices of coriander are in the range of 1100 to 2500 per mane. Coriander futures have also seen a bearish atmosphere in the last one month with an average gap of one thousand rupees, with prices falling to the level of 6300 to 6500 rupees per quintal. At one point in January, coriander futures were at a high level of 8500 to 8600 rupees. This year, despite the abundant production, there is a slump in coriander. So far, it is estimated that about one and a half lakh tonnes of coriander will be collected in various yards.

In addition to coriander, cumin has the opposite situation. Reports of a gap of 15 to 20 lakh sacks in the production of cumin due to shortages have fueled the boom in the cumin market, where demand is higher than supply. Farmer sales have come to a standstill due to high high prices in the range of 7,500 per mane of cumin seeds and over 400 rupees per kg in cumin seeds. Because of this, there are barely around 15,000 to 20,000 sacks in the Unza yard during the peak season of cumin. As it is good for local and foreign consumers, all the goods coming in the yard are traded. As foreigners have developed a taste for Indian cumin over the last few years, during the last financial year 2022, nearly four billion dollars worth of Indian spices including cumin have been exported.

On the other hand, on the second day after the start of the futures business of Isbagol in the NCDEX exchange, which runs the futures business of agricultural commodities, there is a lot of panic in the local spot market, with bullish prices jumping from Rs 240 to a high of Rs 263 per kg. After the launch of Isabgol futures, the team of NCDEX Exchange held a meeting with the Isabgol traders and yard authorities at Twirat Unza and appealed to them to cooperate in making futures trading successful, but the businessmen running the Isabgol factories at the local level expressed their fear that the Isabgol industry would suffer greatly due to the futures. An atmosphere of panic has arisen due to the fear of chaos in the market if speculators enter 25 to 30 lakh sacks of small-sized products per year. About 80 to 90 percent of Isbagol's business is export oriented. Demand remains significant in countries like America, Britain, China, France, Norway, Korea, Japan, Italy, Australia. Being mostly a fiber supplement product, if there is an unlimited boom in isabgol like guar, there is a fear in the business class that the consumption of isabgol will collapse in the future and a total guar-like situation will occur. Due to floods this year, as the prepared crop of Isabgol suddenly spoils, the farmers who suffer 30 to 35 percent loss have also suffered frequent losses.