40-42% Decrease Reported Across Key Regions

Nigella seed, commonly known as Kalonji, is experiencing a rapid price increase due to a significant decline in production and a lack of old stock. Reports indicate a 40-42% decrease in production across major growing regions, including Neemuch, Mandsaur, Kumbhraj, Kota Bara, and Sasaram Rohtas of Bihar. This reduction has led to a rapid growth trend in the markets, with prices increasing by $0,24-$0,30 per kg intermittently.

High Demand Amid Limited Supply

The new crop of Kalonji is arriving, but strong buying from states like West Bengal, Orissa, Assam, and Jharkhand is driving prices up. Traders note that the fish industry consumes a large quantity of Kalonji, and this year, West Bengal's local Kalonji crop is down by 50%. In Rajasthan and Madhya Pradesh, farmers reduced sowing, resulting in a 38-40% decrease in market arrivals compared to last year. At the start of the week, Kalonji prices in Neemuch were $2,40-$2,46 per kg, which has now risen to $2,67-$2,80 per kg. In Rajasthan, bulk sales have reached $2,80-$2,87 per kg.

Pickle Industry and Fish Industry Demand Driving Prices

In Bihar, the supply of Kalonji in the Sasaram line is low, while continuous buying from Ranchi and Assam keeps prices high in Patna, Muzaffarpur, and Gaya markets. Known locally as Mangarela, Kalonji is heavily used in the pickle industry. The demand for Kalonji from the pickle industry remains strong, contributing to the price increase.Last year, despite a crop gap, the market did not see significant growth due to leftover stock from previous years. However, this year, with minimal old stock, the market has experienced a good rise over the past month. Currently, Kalonji is selling at $2,76 per kg, with expectations that prices could reach $3,00-$3,12 per kg in the future.

The combination of reduced production, high demand from various industries, and lack of old stock has led to a significant increase in Nigella seed prices. Traders and consumers should anticipate further price hikes as the market adjusts to these dynamics.