Cumin (Cuminum cyminum) is aflowering plant from the family Apiaceae. The plant is 15 to 50 cm in height.Its fruit is of commercial importance and is elongated, ovoid, 3-6 mm long.Cumin seed is used in perfumery and as flavouring agent in a variety ofcuisines. In India, Jeera is sown from October to November and harvested inFebruary. Fresh crop generally reaches the markets during March. The plantthrives on rich, well-drained sandy loam soil with day time temperatures ofaround 30 degrees. Cumin crop takes about 110-115 days to reach maturity. Unjhain Gujarat is the main trading centre for Jeera in the country.
Global output of Jeera is around2.2 lakh MT per year, of which India produces about 1.5 lakh MT per year.Gujarat and Rajasthan are the major producers of cumin seed in India. Globalexport demand is about 30,000 MT per year. India exports Jeera mainly to theUS, UK, UAE, Japan, Brazil, Bangladesh, Singapore and many other countries.Other Major exporters are Syria and Turkey.
India being the largest producerand consumer, the price of Jeera is mainly determined by domestic factors. Interms of exports India faces stiff competition from Syria which exports about80% of its produce.
Factors influencing prices
? Internationaltrading price
? Domesticand Export demand
? Carryforward stocks
? Sowingand Harvesting
? Climaticconditions (heavy rains can adversely effect the productivity)
About the future contract
Jeera futures contract waslaunched on NCDEX platform on February 2004 and has witnessed considerablevolatility since its launch. Good availability in physical markets providescash and carry opportunity to arbitragers. It serves as a hedging platform forthe Producers and Exporters. The Cumin contract is highly liquid and provideseasy entry and exit to a speculator. Thus the Jeera contract provides space forevery investor category.
Source :- www.ncdex.com
Web resources On