MUMBAI (Commodity Online): The higher levels seen in Jeera futures due to the rising rates over last few days could not be sustained even as arrivals weakened a bit. Low demand in the mandis failed to support the rising rates and some dips were noted.
Traders however expect that with arrivals expected to fall further and pick up in demand likely at the lower levels, the downtrend may be limited. Reports of an expected higher production could prevent rates from rising a lot in short term.
Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year. As per Rajasthan Agricultural Ministry, the sowing area till 20th Dec had been reported at 3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of crops in both states however expected to fall due to adverse weather conditions as per reports.
Exporters are reportedly waiting for the new crop for creating fresh demand in the mandis. The better crop expectations from Gujarat and Rajasthan could be hampered by reports of adverse weather conditions in growing areas that could affect the productivity to some extent as per traders.
Lower production in Turkey and Syria could support Indian rates. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes.
Latest report from Spice Board of India indicates Spices exports for April 2011-Jan 2012 have risen by 1% from 432115 MT in 2010-11 to 436175 MT in 2011-12. Jeera exports rose by 54% from 22450 MT to 34500 MT in same period.