Issue : XXIII Sept. - Oct.

2017

Cumin: Supply Chain Constraints and Prospects

Dr. Vinod Kumar*

India is the homeland of spices since ancient times. It is the largest producer, consumer and exporter
of spices, with 48 per cent share by volume and 43 per cent share by value, in the world. Gujarat is
the second leading producer of spices after Andhra Pradesh in the country. Cumin (Jeera) is one of
the major spices in the country with a share of 23.38 per cent in total area and 11.11 per cent in total
production. It has pharmaceutical, nutraceutical, perfumery and cosmetic uses. India contributes
about 70 per cent of world cumin production followed by Syria 12 per cent, Iran 8 per cent, Turkey 6
per cent and other countries 4 per cent. India accounts for 73 per cent of the Global trade. Vietnam,
USA, UAE, UK, Malaysia, Brazil, Egypt, Bangladesh, Saudi Arabia, Nepal, Sri Lanka are the major
markets for India’s cumin exports. This paper covers the production trends and marketing issues,
recommends bridging yield gap, improving market infrastructure and establishing Spice Park for
sustainable growth in cumin economy.

Trend in Production
The area and production of cumin seed in India is 8.08
lakh hectares and 5.03 lakh tonnes. In India, cumin is
mainly grown in Gujarat and Rajasthan, accounting for
99 per cent of area and production due to favourable
agro climatic conditions. The share of Gujarat in the
total area and production was 36.55 per cent and 59.80
per cent, respectively, during 2015-16. In Gujarat,
Surendranagar, Banaskantha, Rajkot, Jamnagar,
Porbandar, Mehsana and Patan are the major cumin
seed producing districts, whereas in Rajasthan, Barmer,
Jalore, Nagaur, Pali and Jodhpur are the main producing
districts. Production estimates for 2016-17 are lower
due to a decline in the Jeera acreage in the states (Table
1). The compound annual growth rates (CAGR) of area
and production are 5.15 and 10.95 per cent, respectively
in Gujarat which is higher than Rajasthan and India.
The average productivity in Gujarat is 886 kg/ha
compared to that of Rajasthan at 368 kg/ha and India
(616 kg/ha). The low productivity of Jeera in Rajasthan
is due to frequent drought, varietal difference and lack
of assured irrigation facilities while high productivity in
Gujarat may be due to the availability of irrigation water
from Narmada project and check dam. The average
productivity obtained in frontline demonstration and
yield potential of GC-4 variety is 1250 kg/ha and 1875
kg/ha, respectively, which is much higher as compared
to 886 kg/ha. It indicates that there is a wide productivity
gap between actual and potential/realisable yield. There
is a need to bridge productivity gaps.

Table 1: Trends in Area and Production of Cumin in India

(Area in ‘00 ha. and Production in ‘00 MT)
Year Gujarat Rajasthan India
Area Production Area Production Area Production
2000-01 1159.4 625.9 1998.4 767.6 3157.8 1393.6
2001-02 1451.0 613.0 3815.3 1451.1 5266.3 2064.1
2002-03 2000.5 642.7 3212.0 704.8 5212.5 1347.5
2003-04 2030.1 820.0 2278.3 1209.8 4308.4 2029.8
2004-05 2081.4 1069.8 1595.4 690.9 3676.8 1760.7
2005-06 2692.2 1476.1 1351.1 522.4 4030.3 1998.5
2006-07 2592.2 1528.5 1498.2 236.6 4090.3 1765.1
2007-08 2624.6 1985.0 2154.8 663.6 4779.4 2648.6
2008-09 3565.0 2388.0 1691.4 427.3 5271.3 2830.0
2009-10 3117.6 2219.1 2038.5 805.3 5171.3 3039.4
2010-11 2928.5 2192.2 3306.3 1149.3 6250.9 4730.4
2011-12 3739.0 2833.0 4679.8 1778.4 8434.0 4626.5
2012-13 3739.0 2833.0 2200.0 1110.0 5939.8 3943.3
2013-14 3700.0 2800.0 3200.1 1650.3 6900.8 4450.3
2014-15 (P) 2667.0 2514.3 4347.8 1208.3 7015.6 3722.9
2015-16 (P) 2954.0 3009.4 5110.8 2008.5 8082.3 5032.6
2016-17 (Est) 2790.0 2250.0 4810.0 2602.0 7601.0 4854.8
CAGR (%) 5.15 10.95 4.80 6.52 4.82 8.72
Source: Spices Board of India, Socio-economic Review, GoG, Economic Review, GoR, MoA&FW, GoI

*Deputy General Manager, Department of Economic Analysis and Research, NABARD, Mumbai.

Department of Economic Analysis and Research 1

Cost of Cultivation
The cost of cultivation of cumin in Gujarat during
2015-16 worked out to be `56749 per ha. The gross
income and net income were `96427 and `39678 per
ha, respectively. The per rupee returns from cumin
seed cultivation worked out to be `1.70 indicating good
return to the farmers. The cumin seed producers are
confronted with problems such as non-availability of
high yielding disease resistant varieties in time, lack
of proper agronomic practices, inadequate extension
services, inadequate credit support from institutional
sources, lack of adoption of harvesting and post
harvesting technology and lack of centralized facilities
for cleaning, grading, processing, packing and scientific
storage infrastructure.
Supply of quality inputs, following scientific cultivation
practices, improved market facilities in APMCs,
strengthening of extension services, suitable price
policy, encouragement of contract farming, promotion
of organic farming to exploit the trade opportunities
and encourage eco-friendly approach for cumin seed
production, i.e. integrated nutrient and pest and disease
management practices to avoid indiscriminate use of
chemical fertilizers and pesticides will go a long way in
improving the quality of cumin seeds.
Price Trends
The domestic price of cumin seeds mainly depends
on the forecast of area, production, weather during
crop development stages, carryover stocks and export
demands, etc. Bumper crop is expected during 2017-18
due to good sowing progress.
The major trading centres for cumin seeds are Unjha,
Patan, Mehsana, Visnagar in Gujarat and Jaipur,
Kishangarh, Kekri, and Jodhpur in Rajasthan. The
major spot markets are Delhi, Unjha, Rajkot in Gujarat;
Nagaur, Jodhpur, Pali, Kekri and Jaipur in Rajasthan.
Jeera is traded in commodity exchange. Jeera prices
generally remained pressurised in the beginning of
the year from February onwards amid arrival of fresh
crop in the market and as stockist sell off their produce
ahead of the onset of the jeera harvesting season in the
country. Price tends to move upward from June, as the
crop arrival season concludes in India. Stockist buying
and lack of supply from other countries also support
this uptrend in prices which continues till August –
September when prices start retreating once again with
fresh jeera supply coming from Syria and Turkey. Prices
trade at lower level till October and again begin to firm
up with receding arrivals from all countries (Table 2).
Week-wise spot price of jeera in Unjha APMC during
2017 is given in Chart 1. The minimum spot prices of
jeera vary from ` 10000/qtl in February end to ` 16750/
qtl in the month of July. The maximum prices vary
from ` 18200/qtl in July to ` 21500/qtl in October. The
modal prices of jeera spot prices vary from `16000/qtl
in October to `18200/qtl in the month of November
2017. The data revealed that the gap between minimum
and maximum prices narrowed towards end of the year.
Source: Spices Board of India
Jeera prices for March’ 18 delivery on NCDEX is
currently trading at ` 17475 per quintal, almost lower
by `2060 than the January’ 18 delivery contract.
Further, price movement will depend on the expected
demand and quality of Jeera produced in the season.
Any weather related disturbance might provide support
to the prices before the harvesting starts in March.
Unjha APMC in Mehsana District of Gujarat is the
largest Jeera Trading Market in the Asia. Unjha APMC
has refused to join the on-line platform for now, citing
lack of capabilities to maintain the flow of commodity
arrivals to put them on-line. During the season, on
an average over one lakh bags (55 Kg/bag) of Jeera
arrive daily. Sampling, lab testing and grading of such
a quantity was not feasible for the Unjha APMC which
is globally renowned as a Jeera Trading Hub. Since it
handles large arrivals, need some extra infrastructure
support for NAM. Another reason for Unjha APMC’s
decision to not join e-NAM is fear among the traders
that they would end up losing their commission.
Marketing System of Cumin
The marketing system (Kumar,Vinod, 2013, IJAM) in
respect of sale of cumin i.e. place-wise, time-wise, lot-
wise and agency-wise is presented below:

Table 2: Average Monthly Price of Jeera in India

( `/Qtl)
Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg.
2012-13 12750 14325 14150 15625 16625 15200 15563 15925 15910 15588 14875 14250 15066
2013-14 14375 14750 14630 14675 14830 14875 14200 13610 13750 13390 12700 11025 13901
2014-15 10938 12150 12375 12340 11775 11725 11630 12383 13425 14350 15400 15050 12795
2015-16 16563 17350 17250 16650 16937 16750 17050 17000 17063 16000 15750 16080 16704
2016-17 16875 17937 17870 19975 20400 19470 18787 18875 19800 19750 19825 19350 19076
2017-18 20387 20000 19400 19875 20240 19800 19625 19925 - - - - 19907
Source: Spices Board of India

2 Department of Economic Analysis and Research

(i) Place-wise Sale Pattern of Cumin Seed:
Selected farmers marketed 95.41 per cent cumin seed
surplus in the regulated market and only 4.59 per cent
quantity was marketed to village traders.
(ii) Time-wise Sale Pattern of Cumin Seed:
Selected farmers sold 84.13 per cent cumin seed surplus
in the first two quarters of the year i.e. March to August
and only 15.87 per cent quantity of cumin seed was sold
by them in other two quarters of the year i.e. September
to February months.
(iii) Lot-wise Sale Pattern of Cumin Seed: Sixty-
six per cent farmers marketed 62.03 per cent surplus
cumin seed in one lot, 21 per cent farmers sold 25.63
per cent cumin seed surplus in two lots, 5 per cent
farmers sold 2.46 per cent in three lots and 8 per cent
farmers disposed off 9.88 per cent surplus cumin seed
in more than three lots. It is well known that cumin
seed deteriorates in quality like other seed spices during
storage. Hence, the tendency of sale of cumin seed in
one lot was more common (62.03 per cent surplus). It
was also observed that small and marginal farmers sold
entire surplus in one lot.
(iv) Marketing Channel and Efficiency: Two
marketing channels were observed in sale of cumin
and they are (I) Farmers/Producers --> Village Traders
--> Wholesalers --> Retailers --> Consumers (Village
sale) and (II) Farmers/Producers --> Wholesalers -->
Retailers --> Consumers (APMC sale). Farmers sold
95.41 per cent of their produce in Channel II. Price
spread analysis and Shepherd’s ratio revealed that
Channel II is most efficient. The producers’ share in
consumers’ price was highest with 70.84 per cent.
recording an increase of 22 per cent in volume and 28
per cent in value. A total volume of 119000 tonnes of
cumin valued at `1963.20 crore was exported from
India during 2016-17. The mandatory checks on cumin
and its by-products implemented by the Spices Board
of India in the back drop of rapid alerts from importing
countries helped enhance exports. The export of cumin
from India between 2003-04 to 2016-17 is given in
Chart 2. It may be observed from the chart that barring
2005-06, 2010-11 and 2015-16, the export in both
quantity and value terms is continuously increasing at
the compound annual growth rate of 22.72 per cent and
30.74 per cent, respectively. Indian cumin seed has an
edge over that of Syria and Turkey. Sowing in October-
December and harvesting in February-April is helping
in Indian cumin exports as other countries would have
exhausted their produce by then. Further, demand for
Indian cumin is high due to its flavour, quality and
aroma as compared to Syrian and Turkish cumin.
Major Destination of Exports from India
The major destination of export of cumin from India
is presented in Table 3. Cumin seeds are exported to
USA, Singapore, UAE, Bangladesh, Brazil; cumin seed
powder exported to UK & USA; Cumin Oleoresins
exported to USA, UK and UAE. Eleven countries, viz.,
Vietnam, USA, UAE, UK, Malaysia, Brazil, Egypt,
Bangladesh, Suadi Arabia, Nepal, Sri Lanka account for

Export of Cumin from India

The export of spices and spice products from the country
touched an all-time high of 947790 tonnes valued at
`17665 crore during 2016-17. Coriander, cumin, fennel,
fenugreek and celery are the major seed spices exported
from India. Cumin was the second most exported spice, Source: Agmarknet.gov.in

Table 3: Export of Cumin during 2011-12 to 2015-16

(Qty. in tonnes & Value in ` lakh)
Country 2011-12 2012-13 2013-14 (P) 2014-15 (P) 2015-16 (Est)
Qty Value Qty Value Qty Value Qty Value Qty Value
Vietnam 6662 9460 10934 15170 38648 51014 47823 53542 24689 37492
USA 4387 7108 9560 14186 8117 12601 11225 14972 9776 17964
UAE 6261 8277 8441 10833 11005 13053 18693 22400 5787 8551
UK 2151 3433 3066 4430 3340 5429 3617 5485 3757 7324
Malaysia 2132 3257 2902 4163 3528 4895 4022 4967 4078 6537
Brazil 3766 5000 3859 5017 5093 6022 6685 7553 4656 6334
Egypt(A.R.E) 1798 2318 5493 7077 6952 8485 9630 9951 4306 6063
Bangladesh 1416 1728 2110 2627 2086 2446 2885 3066 4275 5428
Saudi Arabia 963 1225 3224 4137 4658 5496 3731 3888 3249 4566
Nepal 230 286 4332 5771 2303 2837 1936 2163 3006 4386
Sri Lanka 383 505 1222 1640 1967 2372 2420 2762 2630 3888
Others Countries 15351 21845 30459 40256 33803 45356 42833 53071 28491 48166
Total 45500 64442 85602 115307 121500 160006 155500 183820 98700 156699
Source: Spices Board of India

Department of Economic Analysis and Research 3

69 per cent of cumin exports from India during 2015-16.
Export to Vietnam accounted for 24 per cent followed
by USA (11%), UAE (5%), UK (5%), Malaysia (4%) of
total exports during 2015-16.
Major Constraints in Indian Spice Industry
The Indian spice industry in general and cumin
industry in particular is facing many challenges in spite
of continuous export growth. If these challenges are
not addressed in time, the cumin industry may have
to face difficult times and the growth rate may not be
sustainable. The following are the major constraints.
a. Challenge of productivity: Increase productivity to
bring down the cost of production.
b. Challenge of food safety and quality: The major
importing countries are coming out with more
stringent legislations on quality requirements.
Indian standards are also revised.
c. Challenge of technology: New product requirements
imposing need to constantly innovate.
d. Challenge of tariff and non-tariff barriers.
e. Challenge of new competitors.
f. Challenge of equity: Internal challenge to double
the farmers’ income so that they continue to produce
the raw material, inclusive growth.
g. Challenge of distribution and promotion.
h. Challenge of product placement of Indian brands
abroad: Slotting fees, brand promotion, etc.
Though the requirement of quality is compulsory for
exports, the food safety norms in India also call for strict
vigil in terms of quality parameters for consignments
traded in India. The Spices Board in association with
the exporting fraternity is taking effective steps for
strengthening supply chain and future growth in trade.
Spreading awareness regarding best practices like,
good agricultural practices, good collection/harvesting
practices, good post harvest and handling, good
manufacturing practices, good hygienic practices,
good marketing techniques, traceability are essential
to maintain food safety and quality standards to boost
exports. Campaign against improper use of pesticides
resulting in residue problems, mechanization of
farming, brings down the cost of cultivation. Market
driven research programmes and collaborative efforts,
cultivation in non traditional areas are some of the
strategies to overcome the constraints.
Prospects
The progress of Jeera sowing is more than the last year
acreage. As on 27 November 2017, Gujarat farmers have
planted Jeera in 1.91 lakh ha. which has increased by
35.6 per cent as compared to 1.41 lakh ha. last year on
the same period. Higher prices throughout the year,
strong export demand and good monsoon prompted
farmers to cultivate more Jeera in India during 2017-
18. Cumin ranks second amongst spices exported
from India, next to chilli. Being the largest producer,
consumer and exporter of cumin, India is the dominant
player in the global market.
Policy Implications
India’s harvest enters the global market (March and
April) before Syria, Turkey and Iran (July). Thus, the
Indian crop holds a major advantage in the international
markets. As the demand for organic seed spices is
growing, there is a need to give awareness for organic
production of spices seed in general and cumin seed in
particular by giving scientific information on suitable
production technology, integrated pest management
and evolve specific varieties for organic production.
The efficiency at production level needs to be raised in
order to make the product price competitive. The cumin
producers and exporters need to be educated and trained
to maintain the quality standard of the products. Contract
farming with buyback arrangement with exporters, as a
tested model of operation, should be encouraged.
To sustain production of cumin in our country and
to compete in international market, there is a need
to improve its productivity by developing improved
production technologies and suitable improved
varieties which are resistant or tolerant to cumin blight.
The instability of export earnings from the cumin
seeds is mainly due to fluctuation in the production in
other countries (Syria, Turkey and Iran) and political
uncertainties in these countries and increased value
of Indian spices in the world markets. Appropriate
measures such as adoption of advanced processing
technology to improve the quality of production of
spices crop to boost the export, setting up of Spice Park
for cumin, fennel, fenugreek and coriander in Unjha,
which is Asia’s largest cumin market and globally
renowned seed spices trading hub, improving the quality
of processed spices to enhance the competitiveness
of Indian cumin seeds in the international market,
provision of subsidies at production and marketing
stages like transportation, storage and processing will
go a long way in making India competitive in cumin
production and marketing.

Publisher :- Dr. U. S. Saha, CGM, Department of Economic Analysis and Research (DEAR), NABARD, Head Office:
Plot No. C-24, ‘G’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai- 400051
Disclaimer: “Rural Pulse” is the publication of the Bank. The opinions expressed in the publication, are that of the Research Team
and do not necessarily reflect those of the Bank or its subsidiaries. The contents can be reproduced with proper acknowledgement.
The write-up is based on information & data procured from various sources and no responsibility is accepted for the accuracy of
facts and figures. The Bank or the Research Team assumes no liability, if any, person or entity relies on views, opinions or facts &
figures finding place in the document.
email ID : dear@nabard.org www. nabard.org.

4 Department of Economic Analysis and Research