Fennel Seed Prices Explained

After exhibiting value fluctuations, fennel prices dipped as exports crowded the market. For instance, India saw a significant increase in the commodity arriving at production centers, stabilizing its market and reducing the likelihood of price increases. On the supply side, the country’s agriculture committee reported that farmers doubled their sowing capacity to gain profit from the expanding fennel market in Asia. 

Why are fennel seed prices fluctuating?

1. Rise in Export Demand

Higher export demand frequently results in greater competition across significant fennel seeds-exporting countries, pushing prices higher as buyers fight for the crop. China, Bangladesh, and Malaysia are the main buyers of Indian fennel seeds which are then processed into powder and shipped to regional markets, such as Europe and North America.

The Indian agriculture committee predicted that commodity exports would increase between 27,000 – 28,000 tons due to the consistent global demand.

2. Weather Conditions

The weather directly impacts the quantity and quality of fennel seeds available for purchase, translating to price fluctuations.

For instance, Egypt (the 2nd largest fennel seeds producer) decreased fennel output due to intense heat waves that affected the country’s production. Additionally, farmers reported a declining fennel acreage to give way for more heat-reliant plants.

3. Foods and Beverages

Incorporating fennel seed powder into functional foods and beverages improves the consumers’ taste buds and offers various health benefits. The commodity’s digestive and soothing properties are a perfect blend for ready-to-eat foods which the food processing industry seeks to capitalize on. Additionally, this trend will expand the market’s profitability beyond traditional cooking.

4. Tariffs and Taxes

Tariffs or taxes imposed by importing nations directly affect the price of fennel seed for consumers. This leads to higher import prices and affects the dynamics of the market pricing system.

For instance, a new trade agreement between the UK and Australia that removes duties on pears and strawberries over four years influenced other fruits and vegetables, including fennel seeds. Thus, changes in the trade environment influence how much different agricultural products charge.

Which variables impact the price of fennel seed?

• Rise in Export Demand
• Weather Conditions
• Foods and Beverages
• Trade Policies
• Seasonal Variations
• Demand Changes

Where does fennel seed come from?

This flowering plant grows in temperate areas and its ripe fruits are known as saunf seeds. When harvested, it is collected as bulbs, leaves, or seeds, depending on the consumption purposes. These are the processes for harvesting different parts of the saunf plant:

1. Harvesting saunf bulb – After planting, give the plant enough time to reach maturity. This usually takes 90 to 115 days. Then, examine the plant’s base to confirm that the bulb is developing. Make sure it is firm and when it is mature, it looks like a tennis ball. Carefully remove the bulb from the base of the plant (using a sharp garden knife or pair of shears )while keeping a short stem.

2. Harvesting saunf leaves – When harvesting, it’s important to trim the outer leaves with scissors or shears so the inner leaves will remain for future harvests. Removing leaves encourages the plant to produce more leaves, aiding the plant’s overall growth.

3. Harvesting saunf seeds – Wait until the flowers transition to a dry brown color, signifying the maturity of the seeds. Then, cut the flower heads using shears or scissors while being careful to save the seeds by placing a bag or container below to collect the seeds.

What are the uses of fennel seed?

Fennel seeds are beneficial to wellness because they are high in iron, fiber, and vitamin C. They manage sugar regulation, appropriate digestion, eye health, and digestive qualities. Also, it is popular for its tasty and aromatic qualities, highlighting its role in various industries.

1. Food and Beverage Industry – In the food industry, its seeds add a savory taste to sausages, pickles, and baked products. The beverage business uses this commodity to make liqueurs and herbal teas.

2. Pharmaceuticals and Cosmetics – Its extracts and essential oils are used for their medicinal and aromatic properties in making perfumes, cosmetics, and other personal hygiene products.

3. Insect Repellent – Aerosol and cream products contain fennel extracts as they ward off insects, particularly mosquitoes. Fennel oil products are useful in protecting humans and animals from vector-borne diseases.

4. Soap and Candle Making – Its mild astringent quality soothes, cleanses, and tones facial skin. It works with natural oils to brighten dull skin without stripping them away. Also, its fresh, clean, and slightly spicy scent offers a calming and relaxing effect on stress and anxiety.

5. Flavoring and Fragrance – Its sweet and licorice-like flavor is a popular ingredient in flavorings for savory and meaty dishes like lasagna and Indian masala.

What is the future price of fennel seed?

The global fennel seed market will rise at a significant rate due to the expansion of the processed food industry. As spice prices continuously fluctuate because of the changing weather systems, fast-food processors mobilize multiple suppliers that provide alternative spice supply.

In addition, the emerging growth of plant-based choices makes headlines in traditional markets as sustainability and health concerns top the buyer’s list. This translates to online platform purchases for fennel seeds.

Its soothing property fuels the use of fennel seed powder in natural skin care products which contributes to its demand from the global market. Additionally, the growing demand for organic fennel seeds due to their antioxidant property elevates their marketability in the medical industry, particularly in Brazil, Mexico, Indonesia, and South Korea. Overall, the price of fennel seeds will be $0.24 per kilogram in 2028, with an estimated CAGR of 14.08%.