Futures price of cumin (jeera) has crashed 20% in two months in anticipation of a bumper crop and the coronavirus outbreak in China, a significant importer of the spice.

The March contract for delivery on the National Commodity and Derivatives Exchange (Ncdex) hovered around ₹135 per kg, down a fifth in two months. Cumin exporters were expecting prices to stabilise around ₹140 per kg following the forecast of a higher output, but the coronavirus scare dragged prices further down.

“Big players sold huge quantities on the Ncdex, causing a downward pressure on prices. China is contracted to buy large volumes from next month when the new crop arrives in full swing next month,” said U Karthik, partner, Asian Spices. Karthik said he expects prices to drop further but not breach the ₹130 per kg mark.

Those who have been already sending consignments to China are facing problems because of the coronavirus outbreak. “Many restaurants are closed in China and shipments are stuck at the ports,” said Dipak Parikh, partner, Kanu Krishna Corporation.