Now jeera prices sizzle at Rs. 850/kg
What's the story
Your food may taste a bit bland from now on, as in the last eight months, the price of jeera, or cumin, a staple ingredient in Indian cuisines, has increased by 300%, rendering it unaffordable.
The retail price of jeera in Lucknow has reached Rs. 850/kg as opposed to Rs. 250/kg some months ago.
Wholesalers expect the price to go up to Rs. 1,000/kg.
Context
Why does this story matter?
Recently, the price of tomatoes, onions, green chili, and coriander leaves also shot up, leaving households worried.
The price hike is being attributed to a supply shortage triggered by the unseasonal rains and hail in March, which significantly damaged crops.
The string of price surges is also a concern for the Reserve Bank of India (RBI), which is tasked with controlling inflation.
Details
Drop in production causing price hike
Jeera traders said the primary reason behind the price hike is the marginally lower production in 2022-23 in Gujarat, the main supplier of the spice seed.
The unexpected showers in March this year further hit production.
The prices are likely to go further up in view of the monsoon as the season is not favorable for jeera cultivation.
Information
Restaurants increase rates, households reduce usage
The price surge has forced homemakers to reduce the amount of jeera used in everyday cooking, while restaurants have increased the price of jeera-based dishes such as aloo jeera and jeera rice to meet budgetary limits, The Times Of India reported.
Export
India largest producer, exporter of jeera
According to TOI, India's jeera production serves domestic as well as export markets.
India accounts for nearly 70% of the world's jeera production. In 2021-22, Gujarat and Rajasthan had a combined 99.7% share of the country's total jeera production, The Indian Express reported.
Notably, China and the countries in the Middle East are aggressively importing jeera, further driving up the prices.
Price
Price nearly tripled since October last year
Notably, Unjha in Gujarat's Mehsana dominates the domestic production of jeera.
On June 19, jeera's procurement price at Unjha's agricultural produce market committee (APMC) mandi crossed Rs. 50,000 per quintal.
On Tuesday, it touched a record high of Rs. 54,125 per quintal.
Jeera prices reached Rs. 20,000 per quintal for the first time in 2017 and remained somewhat stable until October 2022.