Pressure on prices of carom seeds due to better production and high stock
12-Feb-2025 08:38 PM
The pressure on carom seed prices is primarily due to the increased production and availability of stock. Key factors include:
Increased Production: Favorable weather conditions and a larger sowing area are expected to boost carom seed production by 20-25% this season. This higher supply is putting pressure on prices.
Excess Stock: Stockists and producers have a large inventory of last season's crop, further contributing to the supply glut in the market.
Imported Goods: Cheaper imports from Pakistan are affecting local markets, especially in border areas like Rajasthan and Punjab, where carom seeds are available at lower prices, attracting buyers away from local producers.
Cautious Domestic Demand: Domestic buyers are hesitant, waiting for prices to stabilize before making purchases, which is weakening demand for carom seeds.
Potential Price Drop: Due to the increased supply and limited demand, prices of carom seeds are expected to fall further before the market picks up again. This drop could benefit stockists in the long term, especially if prices stabilize at lower levels.
Harvesting and Readiness: In major producing areas like Madhya Pradesh, Maharashtra, and Gujarat, carom seeds are close to being harvested, ensuring that the supply remains high.
Trade analysts predict that as the market stabilizes and prices decrease, stockists could benefit from the lower costs during the lean season, as long as there are no significant risks in the market.