Market Survey

May 2012 • FaCTS FOR yOU 11

By: Dr M. ThaMaraikannan C. SengoTTuvel

CUMIN: CaN INdIa MaINtaIN a MoNopoly?despite being the dominant player in the world’s cumin market, India’s share of exports con-tinues to drop. on the plus side, its domestic production has increased, as has local consump-tion. Read on, for an overview of this healthy spice.

mixtures—the most important being ‘garam masala’, which is extensively used throughout South Asia. It also has a lot of medicinal value.

India is the largest producer of cumin in the world. A particular va-riety of cumin seed is also produced in Iran, Syria and Turkey but only for exports. The global consumption of cumin seeds is quite low. Both whole and powdered seeds are inter-nationally traded by the exporting countries.

India is the largest producer and consumer of cumin, with annual production ranging between 150,000 and 300,000 tonnes. The seeds are exported to Japan, Brazil, US, UK, UAE, etc. Rajasthan and Gujarat are the two major states producing an enormous quantum of cumin, con-tributing 90 per cent of India’s total production. A significant percentage of the total production is consumed domestically.

the history of cumin

Cumin has been in use since an-cient times. Recent excavations at the Syrian site Tell ed-Der reveal that the use of this spice dates back to the sec-ond millennium BC. There have also been reports of cumin use from exca-vations at several of ancient Egyptian

Cumin is a flowering plant from the Api-aceae family, native to regions ranging from the eastern Mediterra-

nean to India. The cumin seed has a significant demand all around the

globe—especially in places where spicy food is preferred. It is an in-tegral part of the recipes in various cultures. Next to pepper, cumin is considered to be the most important spice in the world. Cumin in ground form is also part of various spicy

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12 FaCTS FOR yOU • May 2012

Table III

State-wise area and Production of Cumin During 2000 to 2010

(area in hectare, production in tonnes)

Year Rajasthan Gujarat Area Production Area Production

2000-01 199,839 76,760 115,942 62,5962001-02 381,534 145,110 145,100 61,3002002-03 321,201 70,478 201,000 64,3002003-04 227,829 120,981 185,200 94,4002004-05 159,537 69,093 208,141 106,9752005-06 135,113 152,239 267,920 147,6152006-07 149,816 23,666 259,217 152,8452007-08 202,687 63,321 232,000 144,9002008-09 158,228 40,843 271,000 128,1002009-10 (P) 182,340 65,438 216,000 11,700

Source: Spices Board

archaeological sites dating from the New Kingdom period. Originally cul-tivated in Iran and the Mediterranean region, cumin has been mentioned in the Bible in both the Old Testament (Isaiah 28:27) and the New Testament (Matthew 23:23). It was also known in ancient Greece and Rome. The Greeks kept cumin at the dining table in its own container—a practice that con-tinues in Morocco.

Cumin fell out of favour in Eu-rope, except in Spain and Malta, during the middle ages. It was in-troduced to the Americas by Spanish and Portuguese colonists. There are several types of cumin in use but the most famous varieties are black and green cumin, which are both used in Persian cuisine.

It has since come back into the cuisine in parts of Europe. The plant occurs as a rare casual in the British Isles, mainly in Southern England, but the frequency of its occurrence has declined greatly. According to the Botanical Society of the British Isles’ most recent report, there has been only one confirmed record of it since 2000.

the medicinal value

1. Cumin seeds contain numer-ous phyto-chemicals that are known

to have antioxidant, carminative and anti-flatulent properties, and are also an excellent source of dietary fibre.

2. Cumin seeds contain many healthy essential oils such as cumi-naldehyde (4-isopropylbenzaldehyde), pyrazines, 2-methoxy-3-sec-butylpyra-zine, 2-ethoxy-3-isopropylpyrazine, and 2-methoxy-3-methylpyrazine.

3. The active elements in cumin may increase the motility of the gastro-intestinal tract as well as im-

prove its digesting power by increas-ing enzyme secretion.

4. This spice is an excellent source of minerals like iron, copper, calcium, potassium, manganese, se-lenium, zinc and magnesium.

5. It also contains good amounts of B-complex vitamins such as thia-min, Vitamin B-6, niacin, riboflavin, and the other vital anti-oxidant vita-mins like A, C and E.

6. Cumin is rich in iron and very good for those who are pregnant and also for lactating mothers.

7. The seeds are also a rich source of many flavonoid phenolic anti-oxi-dants such as carotenes zeaxanthin and lutein.

7. Cumin water is also effective in inducing deep sleep. A teaspoon of cumin seeds and a ripe banana at night, followed by a few sips of cumin seed water, should have the desired effect.

World production of cumin

Cumin is cultivated in countries such as Syria, Iran, Turkey, China and Latin America besides India. In-dia is the largest producer and con-

sumer of cumin. The average an-nual production of cumin in Syria is 10,000-20,000 tonnes; in Tur-key, it’s 7000-15,000 tonnes; in Iran, 5000-10,000 tonnes and in China 8000 tonnes. The cumin har-vest in these countries is car-ried out by June and July, where-as February to March is the harvesting peri-od in India. This

Table I

average Consumption of Cumin During 2009-10

Country Tonnes

Bangladesh 15,000Pakistan 10,000USA 15,000Europe 5000China 10,000Latin America 9000India 100,000Others 23,000Total consumption 187,000

Source: India bulls Commodities Limited

Table II

area and Production of Cumin in india

During 2002 to 2010Year Area Quantity (hectare) (tonnes)

2001-02 526,634 206,4102002-03 521,250 134,753 2003-04 430,840 202,980 2004-05 367,678 176,068 2005-06 403,033 199,854 2006-07 409,033 176,511 2007-08 477,936 264,8602008-09 527,132 283,0002009-10 538,023 294,000

Source: Spices Board

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May 2012 • FaCTS FOR yOU 13

gap in supply has given the Indian cumin crop an advantage in the in-ternational market. The other major cumin-producing countries include Mexico, Portugal, Spain, Japan, the Netherlands, France and Morocco.

In April-June 2011, the global cumin production fell by 26 per cent to 116,900 million tonnes, from 157,850 million tonnes in the

previous year. Similarly, the export of cumin dropped by 46 per cent to 5750 million tonnes, from 10,600 million tonnes in 2010.

India contributes about 68 per cent of the total global cumin seed out-put. The contribution of Syria is about 9 per cent, China 6 per cent, Pakistan 5 per cent and Iran 4 per cent.

World consumption of cumin

Syria and Turkey consume only 10 per cent of their crops domestical-ly. India’s export trade fell in 2010-11 due to a larger volume of cumin in the global market from Syria and Turkey. Next to India, other large consumers of cumin are Bangladesh, USA, Pakistan and China (Table I).

Cumin production in India

Generally, in India, cumin is harvested around the months of February and March. India ac-counts for almost 70 per cent of the world’s production, but consumes

Table IV

export of Cumin from india During 2001-02 to

2010-11Year Quantity Amount (tonnes) (Rs million)

2001-02 18,891 1783.5282002-03 17,248 1481.8002003-04 7957 588.4002004-05 15,767 1152.9002005-06 12,879 981.9072006-07 26,042 2022.4122007-08 28,000 2915.0002008-09 52,550 5440.0002009-10 49,750 5482.4502010-11 (E) 32,500 3959.775

Source: Spices Board

Cumin plants with flowers

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14 FaCTS FOR yOU • May 2012

almost 80-85 per cent domestically, with only 15-20 per cent exported. Even this small export percentage makes it the largest exporter of cumin. Apart from Gujarat and Ra-jasthan, Uttar Pradesh and Mad-hya Pradesh also produce small quantities of cumin.

Table II shows that the area and production levels decreased mar-ginally during the years 2001-02 through to 2004-05. Subsequently, the area and production levels have gone up, peaking at 538,023 hectares in 2009-10. With the increased acre-age under cumin cultivation, pro-duction also increased, hitting an all-time high of 294,000 tonnes in 2008-09.

Major cumin producing states in India

The total area under production in Gujarat stood at 244,600 hectares in the year 2010, which was margin-ally higher than 242,700 hectares in 2009. The unfavourable weather conditions were the main reason for low production.

Low carryover stocks in the in-ternational market have supported the prices, as most traders felt that

export demand will shift to India as the Indian crop would be the first to arrive in the international mar-kets.

Export of cumin from India

India is the largest producer, ex-porter and consumer of cumin seeds in the world, with Syria, Turkey and Iran being its main competitors. In the world market, India faces stiff competition from Syria, which ex-ports about 80 per cent of its pro-duce. Other countries giving stiff competition are Turkey and Iran, as the bulk of their production is exported and their prices are much lower than India’s.

Normally, India exports cumin during the months of February, March and April. This volume has decreased by 39 per cent from 44,800 tonnes to 27,500 tonnes, when com-pared to last year’s exports.

Indian cumin exports peaked at 52,550 tonnes during 2008-09, com-pared with about 28,000 tonnes the previous year. In value terms, ex-ports amounted to Rs 5440 million during 2008-09. India exports about 19,600 tonnes of cumin per annum

(the average for the 10-year period from 1999-2000 to 2008-09).

The exports from India have de-clined over the past few years. This scenario, with higher production yet lower exports, is proving to be very harmful for the prices.

Factors influencing pricing

The following are the major fac-tors influencing the pricing of cumin seeds:

1. Weather 2. Area and production3. Carry-forward stocks4. International trading prices5. Domestic and export demand6. Stock with farmers, traders

and stockists Cumin ranks fourth amongst

spices exported from India, next to chilli, pepper and turmeric. Being the largest producer, consumer and exporter of cumin, India is the most dominant player in the world mar-ket.

Dr M. Thamaraikannan is associate professor, Department of Commerce, Sri Vasavi College, while C. Sengottuvel is assistant professor, Department of Com-merce with CA, Nandha Arts and Science College, Erode, Tamil Nadu

Table V

Country-wise export of Cumin from india During 2006-07 to 2010-11(Quantity in MT, Value in Rs million)

Country 2006-07 2007-08 2008-09 2009-10 2010-11 Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

USA 4246 335.795 3014 320.279 4760 537.856 4002 482.148 2214 297.993Nepal 3228 272.179 2919 311.694 2608 284.883 3729 422.894 1898 226.02UK 2010 171.771 1860 211.513 2898 344.068 3447 399.078 2457 324.277Malaysia 1884 163.262 1213 125.022 810 88.147 3063 342.508 1537 206.152UAE 1557 104.725 2841 270.88 12184 1159.689 5932 622.488 1888 215.071Mexico 609 48.574 513 55.623 1066 115.62 871 95.047 382 46.209Brazil 581 44.843 2217 239.683 2277 243.76 4936 524.967 2552 290.948Japan 581 54.26 415 72.216 640 103.188 559 94.351 381 66.925South Africa 490 40.267 610 68.326 742 84.178 739 83.999 788 103.264Indonesia 252 17.944 413 34.069 597 50.107 857 81.479 445 49.329

Source: Spices Board