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Jeera futures fall 13% as exports slow down

Insufficient rains had pushed up the December futures price in NCDEX beyond Rs 200 per kg mark.

, ET Bureau|
Dec 07, 2018, 11.11 AM IST
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The price reached Rs 211 per kg before declining.
Jeera futures price have dropped 13 per cent in a month with a slowdown in exports and the promise of irrigation facilities in rain-deficient Gujarat, the main producing region of the spice.

Insufficient rains had pushed up the December futures price in NCDEX beyond Rs 200 per kg mark. The price reached Rs 211 per kg before declining. About 35 per cent shortage in rainfall has adversely impacted the sowing of the second-largest exported spice from the country.

“The Gujarat government has assured the industry of providing irrigation facilities. But the sowing is down 26 per cent than last year, which may lead to 10-15 per cent shortage in production of next crop,” said Ritesh Kumar Sahu, research analyst at Angel Commodity Broking. The jeera sowing acreage in Gujarat declined to about 2 lakh hectares from 2.7 lakh hectares.

“The purchases have come down. But there is demand for the fresh crop that will arrive from next March. The buyers are offering $2,350 to $2,400 per tonne for the new crop compared with $2,600 at present,” said Dipakh Parikh, partner, Kanu Krishna Corporation, an exporter.

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