Cumin Seed Prices Explained
Cumin seed prices continuously soared this year due to climate change that ravage across its producing countries.
India ( the world’s largest spice producer ) suffered unseasonal rains that reduced its cumin yield to 15%, resulting in a whopping $545.97 wholesale price in its domestic market value.
Why are cumin seed prices fluctuating?
1. Weather Conditions
Cumin seeds are weather-sensitive, thus, changes in temperature, precipitation, or other climatic factors hurt crop production.
Additionally, unfavorable weather conditions like droughts or heavy rains lower output, which affects cumin seed market pricing.
For instance, due to lower land and crop damage from excessive rains, India suffered a 33% decline in cumin seed production in the 2021–2022 season.
Therefore, this caused a major impact on the worldwide cumin market as India is the world’s largest producer and exporter, accounting for about 70% of the global supply.
2. Crop Quality
Cumin seed quality is another determiner of its market pricing as high-quality seeds have excellent purity, aroma, and oil content, therefore posing great profitability in the market.
High-quality cumin seeds command higher costs from suppliers and dealers because of their popularity and potential for enhanced flavor and aroma in culinary applications.
Conversely, low-quality seeds with imperfections such as weaker scent or less oil have lower market value and cost less. Overall, the commodity’s quality plays a big role in cumin seed prices.
3. Crop Pests and Diseases
Crop pests and diseases negatively impact the quality and quantity of cumin produced. These infestations lead to lower quality seeds and decreased yield from cumin crops.
Overall, when fewer seeds are available to meet demand, the overall amount and quality of cumin are reduced which results in a spike of cumin seed prices.
4. Global Supply and Demand
The price of cumin seeds is directly influenced by the supply and demand worldwide. For example, over the past two months, cumin prices have risen by approximately one thousand rupees per quintal/hundredweight.
Generally, this increase comes from the limited supply of cumin and heightened demand during the Festival Season in India.
Which variables impact the price of cumin seed?
- Weather Conditions
- Crop quality
- Crop Pests and Disease
- Global Supply and Demand
- Market Speculation
- Harvesting Technique and Technology
Where does cumin seed come from?
Cumin is a flowering plant in the Apiaceae family. Additionally, it’s made from the dried seeds of the herb known as Cuminum cyminum.
India is one of the world’s largest producers and consumers of cumin as it uses the spice widely in cooking to give a unique flavor to a variety of foods. Here is a general guide on how to harvest cumin seeds:
1. Harvesting – To ensure that the seeds are mature and fully formed, test harvest a small portion of the crop before harvesting the entire crop. Furthermore, it is done by carefully trimming the seed heads using pruning shears or sickles.
2. Bundle and Dry – After collecting the gathered seed heads and tying them into bundles, hang the bundles upside down in a dry place with good ventilation. This allows the seed heads to dry completely.
3. Threshing – Next, when the seed heads are thoroughly dried, separate the cumin seeds by gently rubbing the heads to release them. As an alternative, you can separate the seeds from the seed heads using your hands or a clean cloth.
4. Cleaning – Then, clean the harvested cumin seeds by removing any remaining debris or chaff. Additionally, you can use a sieve or a fan to assist in separating the seeds from unwanted particles.
5. Storage – To maintain their flavor and quality, store the cleaned cumin seeds in sealed containers in a cold dry place.
What are the uses of cumin seed?
The flavor and scent of cumin are earthy and toasted, with a delicate balance of sweetness and bitterness. Also, they are rich in vitamins, minerals, antioxidants, and qualities that are similar to those of turmeric.
Moreover, they are used in numerous industries due to their distinct flavor and possible health benefits.
1. Food Industry – The culinary industry uses cumin seeds extensively because they add a toasty, aromatic, and a bit of nutty flavor to many foods such as soups, stews, curries, and spice blends.
2. Medicinal Uses – They are traditionally used in some cultures for their potential medicinal properties. Additionally, they are included in pharmaceutical formulations, herbal remedies, or dietary supplements.
3. Cosmetic and Agricultural Products – Cumin extracts or oils are incorporated in cosmetic products such as perfumes, lotions, and creams for their fragrance. Moreover, they are used in the formulation of biopesticides for agricultural purposes.
4. Animal Nutrition – Cumin seeds or cumin meal are included in livestock feed for their potential nutritional value.
5. Dietary Supplements – The production of dietary supplements uses cumin as its ingredient due to its potential health benefits.
What is the future price of cumin seed?
The rising demand for functional foods drives the growing market for cumin seed oil.
Additionally, the demand growth for cumin seed oil in cosmetics and personal care products fueled by increased exports and a preference for organic ingredients due to strict European regulations will highly contribute to its marketing expansion.
Thus, the estimated price of cumin seed will be $6.28 per kilogram in 2028, with a compound annual growth rate of 5.0% in the forecast period ( 2021 to 2028 ).