1 week ago
Unjha Spice Market Struggles Amid Freight and Export Disruptions
Unjha is a major market in India for cumin and other spices.
Its spice businesses are having trouble sending products to customers overseas.
Shipping containers now cost much more because of risks linked to the West Asia conflict.
Some shipments must take a longer route through UAE ports, which also causes delays.
Insurance companies are not covering many shipments, so exporters must accept more risk.
China has grown a large amount of cumin, reducing its need to buy from India.
As a result, cumin exports and prices have remained weak.
Smaller exporters are finding it harder to continue, while larger businesses may be better able to manage the costs.
Unjha’s cumin and fennel received GI tags in July, but it is not yet clear whether this will bring higher prices.
Unjha’s cumin trade remains weak months after West Asia-related disruption eased.
Estimated cumin exports fell to about 44,000 tonnes in Q1 FY27 from 59,247.76 tonnes in Q1 FY26.
Container freight to Dubai rose from $250–400 before the conflict to $2,500–4,000.
Exporters face limited insurance, longer payment cycles, and additional routing through UAE ports.
A bumper Chinese cumin crop and newly awarded GI tags could shape Unjha’s future prospects.
- Who
- Unjha’s spice traders and exporters, including cumin businesses, are affected; the market is also linked to overseas buyers in China, Dubai, the Middle East, Europe, and the United States.
- What
- The Unjha spice market is struggling with lower cumin exports, higher freight costs, shipping risks, delayed payments, and weaker demand.
- Where
- Unjha, India, with exports routed to destinations including Dubai and through Korfakkan Port and Jebel Ali Port in the United Arab Emirates.
- When
- The disruption continued months after the immediate impact of the West Asia conflict eased; estimated figures compare Q1 FY27 with Q1 FY26.
- Why
- Higher freight and insurance risks, shipping delays, and China’s bumper cumin crop have reduced the demand and competitiveness of Indian cumin.
Key facts
- Q1 FY27 cumin exports
- Estimated at around 44,000 tonnes.
- Q1 FY26 cumin exports
- 59,247.76 tonnes.
- Overall spice exports
- Estimated to have declined by around 11–12% during the quarter.
- Freight to Dubai
- Rose from $250–400 before the conflict to $2,500–4,000 per container.
- Additional UAE routing cost
- About $1,600 when containers are routed through Korfakkan before Jebel Ali.
- Cumin price
- Trading at around Rs 250 per kilogram.
- Unjha inventory
- Around 30 lakh sacks, each containing 60 kilograms of cumin, according to the market committee chairman.
- GI tags
- Cumin and fennel registered with the Unjha Agriculture Produce Market Committee received GI tags in July.
Quotes
Dinesh Patel
Chairman of the Agriculture Produce Market Committee in Unjha
“Sending containers has become a costly proposition. Moreover, there are many ships waiting to come back from Hormuz to India. The numbers cannot be ascertained.”
financialexpress.com
“There is no insurance. If something goes wrong, then we have to bear all the losses.”
financialexpress.com
Sources
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