India's Cumin Exports Drop in 2021-22 Amid Sluggish Chinese Demand

Cumin Seed

India

China

Supply Chain Management

Published May 26, 2022

India's cumin exports tumbled to 198,577 mt in the 2021-22 season, down 28% compared to the previous season. The shipment deterioration reflects a fall in demand from China, the primary buyer of the Indian spice. The country tightened its pesticide residue requirements for cumin at the end of 2021, with nine more chemicals not allowed to be present in the commodity. Lower exports have not put downward pressure on the domestic and export prices, as India's 2022 cumin output has fallen dramatically.

Although Chinese monthly cumin imports were trailing behind most of the 2021-22 season, the strongest import plunge began in October 2021, when purchases tumbled to zero. It was when China tightened up the phytosanitary regulations for cumin imports. The country's trade authorities added nine pesticides to the chemical list, whose presence is not allowed in imported jeera.

Source:Indian Ministry of Commerce and Industry

Tridge's representative in India, Rekha D, mentioned that China is not necessarily looking for organic cumin, the supply of which is usually constrained. However, there are hazardous components whose excessive residues are not tolerated in imported products. Twelve substances cannot be present in imported cumin, with organophosphate compounds being the most numerous. Because of the mentioned above strict control, the General Administration of Customs required that each imported cumin consignment be accompanied by the official pesticide-residue certificate issued by the Indian governmental authorities in October 2021.

Because of the applied limitations, Chinese jeera purchases from India have ranged between 250 to 850 mt since November 2021, with only pesticide-free batches entering China. In March 2022, India's cumin exports to China totaled 530 mt versus 16,339 mt a year earlier.

Indian farmers have been using more insecticides and fungicides this production season. The leading producing states, Gujarat and Rajasthan, experienced abnormal rainfalls from November to January 2022 triggered by climate change. With accessive precipitations, more plant diseases affected the crop, spurring the intense use of chemical protection.

Despite an anticipated fall in exports in 2022-23, meaning more supply for the local use, the domestic and export markets are expected to remain bullish. India's jeera output is estimated at 560,000 mt in 2022, down 35% YoY. Without shipments to China, Indian jeera exports could be around 150,000 mt this season, making the total domestic supply at 410,000 mt. In 2021, the national jeera supply was 656,000 mt. At the same time, India's demand may increase in the current season, as the country continues to reopen after COVID, with higher the dining sector using more spices.