Cumin price hike of 88.46% and turmeric’s surge of 29.42% (from 1st January to 11th July 2023) in a few months captivated the spice market. Uncover the reasons behind this frenzy!
The soaring prices of cumin (jeera) and turmeric (haldi) have sent shockwaves through the spice market. These humble spices, essential for adding that extra tadka to our meals, have embarked on an unprecedented rally, reaching record-breaking price levels.
As we stand in the midst of this culinary storm, it is crucial to understand the reason behind this surge and what lies ahead for these essential kitchen spices.
On 1st January 2023, cumin was trading at Rs 31,200 per quintal on NCDEX. Fast forward to 11th July 2023, and its price has skyrocketed to Rs 58,800 per quintal. This represents a staggering price hike of 88.46% in just seven months!
Similarly, turmeric has also experienced a significant price surge. On 1st January 2023, its price stood at Rs 8,224 per quintal, but on 11th July 2023, it surged to Rs 10,646 per quintal, marking a substantial increase of 29.42%.
Coriander witnessed a noteworthy price hike, reaching Rs 11,405 per quintal in April 2023 from Rs 6,400 per quintal. However, prices have since cooled off to some extent.
Reason Behind The Price Hike
The remarkable surge in cumin prices can be attributed to several factors, primarily the expectation of a lower crop yield. The carry-over crop from the previous year was also insufficient, leading to reduced availability in the market, according to CNBC TV18.
The scarcity of spices has created immense pressure, causing suppliers to hold firm on their pricing. Suppliers are capitalising on the situation with soaring demand and limited supply, contributing to the unprecedented price rise.
The future of cumin and turmeric prices appears uncertain, as various factors will continue to shape the market dynamics. Weather patterns, geopolitical developments, and evolving consumer preferences will play significant roles in determining the trajectory of these spice prices.
P.S. : Tomato prices also have been skyrocketing, with a whopping five-fold hike that threatens to shake up food inflation numbers. Curious about what’s next? Read our article on surging food inflation.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.