The Wholesale Price of Mung Bean in China Increased by 4% MoM Due to Low Supply

The wholesale price of mungbean in China has increased by 4% MoM to CNY 12/kg. The price has reflected an upward trend since two weeks ago due to a lesser supply of mung bean in the Chinese market.
The wholesale price of cumin seed in India has reached a record high of USD 6.53/kg by the end of June 2023, up by 7% WoW. This significant price increase can be attributed to a lower supply of Indian cumin seeds coupled with seasonal demand. One of the key reasons behind the rising prices is the decline in cumin seed production in India. Indian cumin seed in the past three years has fallen, and in MY 2022/23, production is estimated to decrease to 7 lakh tons, down by 3% YoY. This reduction can be attributed to unseasonal rains in March in Gujarat, negatively impacting crop yields. Furthermore, the carryover stock from the previous crop year is estimated to be only 1 lakh tons, indicating a limited inventory available to meet demand. The combination of reduced production and limited carryover stock has resulted in cumin seed scarcity, driving up prices. Additionally, the surge in demand for cumin seeds due to Bakrid festivals by the end of the month has further intensified the price increase, reaching a record high in the last week of June. Looking ahead, it is anticipated that the wholesale price of cumin seed in India will continue to remain at elevated levels or may even experience further upward pressure in the near term. Producers would need to increase area plantations during the sown season in Oct-23 to alleviate the supply shortage.