Lower Cumin Exports from India in H1 of 2022

Cumin Seed

India

Market & Price Trends

Published Jul 28, 2022

India produces 70% of the world's cumin, exporting the product to over 20 countries in the world. Over the years, the country has managed to retain its position and has recorded growth in exports every year. However, in the last two years, India’s cumin exports have fallen as the country struggles with lower production volumes, which is driving up the prices of cumin. Cumin prices touched an all-time high in the last month, recording a YoY increase of over 50%. Furthermore, pesticide residue in Indian consignments of cumin in China has resulted in very few shipments to the country and a dramatic fall in the value of exports.

Cumin production was originally native to Egypt’s Nile valley and the Eastern Mediterranean region but is now largely produced in four countries — India, Syria, Turkey, and the United Arab Emirates (UAE). India accounts for 70% of the world’s cumin production and is also the largest exporter. Shipping out 30–35% of its output, India is the largest cumin-exporting country. Cumin is the second most popular spice after black pepper, given its ability to bring out flavors and add depth to dishes. The year 2022 may not be the year for India’s cumin exports: the country has already been struggling with lower production volumes, which is driving up the prices of cumin. In addition, one of the largest markets for Indian cumin—China—has been rejecting Indian cumin due to pesticide issues, resulting in much lower exports.

Cumin Prices in Main Cumin Producing Region of India

Source: Tridge

Based on a report done by CRISIL, the acreage under spice fell an estimated 21% on-year to 9.83 lakh hectares, with major drops in two key producing states. To add to the woes, an adverse climate impacted the yields of cumin, resulting in a YoY decline of 20% and 15% in production in the two states, respectively. According to the report, total cumin production in India will fall by at least 35% YoY by 2022. Lower availability of the popular spice in India has resulted in skyrocketing cumin prices in the country. According to the Tridge’s Domestic Price Data Explorer, the per kg price of cumin in Jodhpur, Rajasthan region (the second largest producer of cumin in India), has increased by over 50% in the last year. Higher prices, coupled with low supply in India, have reduced the volume of India's cumin exports this year and it is anticipated that the trend will continue until the next crop comes on the market and production picks up again.

India exports cumin to nearly 40 countries worldwide.The Gulf countries account for the majority of exports, followed by the United States, Europe, China, and Latin American countries. China has emerged as the largest importer of cumin from India in the last few years, accounting for around 70,000 mt a year. In 2022, India's cumin exports were also reduced due to a decline in shipments to China, following reports of pesticide residue in Indian consignments. The shipping industry experienced a shrink in order volumes after the implementation of pesticide residue standards in China. These issues date back to December 2021, when China agreed to import cumin from India, if accompanied by a Spices Board certificate that confirms that consignments are pesticide-free. To tap into the Chinese market again, India needs to work on producing cumin with limited use of pesticides and follow standard good agricultural practise (GAP).