Cumin Prices Take a Hit as Supply Soars and Demand Stalls
The current slowdown in cumin prices is primarily due to weaker domestic demand. Key reasons include a reduction in demand in both domestic and international markets, competition from cheaper cumin imports from China, farmers releasing stocks, and increased expectations of a bumper crop following last year's record price surge. Despite supply disruptions from countries like Turkey and Syria, the Indian market has sufficient stock, and buyers are being cautious with their pricing, which has reduced speculative trading and led to falling prices. Experts suggest that after last year’s price spike, the primary reason for the current price dip is the expectation of a large harvest and increased sowing, which has led to higher market arrivals and a decline in both domestic and export demand. Major buyers like China and Bangladesh have sharply reduced their cumin imports, negatively affecting exports. In addition, due to last year’s high prices, farmers have stockpiled cumin, and now, due to uncertainty, they are flooding the market with their goods, further increasing supply. Cheaper cumin imports from China and potential increases in production from countries like Turkey and Syria have put additional pressure on Indian cumin prices. Buyers are wary of price fluctuations and have been reluctant to purchase in bulk, reducing overall demand. Speculation has also decreased, and investors are being cautious, which is preventing prices from stabilizing. While some regions have seen crop damage, the overall expectation of a good harvest and the impact of last year's production continue to weigh on the market. As a result, cumin prices are on a downward trend, both domestically and globally, and the likelihood of a significant price surge in the near future seems low. Due to a projected doubling of cumin production this season compared to last year, the prices remain low, with no immediate prospect of a price increase. In India’s largest cumin market, Unjha, a lack of demand for this essential spice has further pressured prices. Currently, both domestic and international demand for cumin remains weak, leaving traders concerned. In the local wholesale market, stockists are struggling with sluggish demand, and cumin prices have fallen to ₹21,800–22,000 per quintal for regular quality and ₹23,500–24,500 per quintal for machine-cleaned premium varieties. The previous day, prices had dropped by ₹200. With reduced domestic and export demand and a global supply surplus, cumin prices have continued to decline.