Coriander Futures Market Witnesses Bullish Trend

13-Nov-2024 12:17 PM

Coriander Futures Market Witnesses Bullish Trend
The coriander futures market is currently experiencing a bullish trend. As of the writing of this report, the November futures price has risen by 4.82%, reaching Rs. 7,248 per quintal. The December, January, and April futures contracts have also seen significant gains. The primary reason for this upward movement is the slowdown in the sowing of coriander in Gujarat and Rajasthan, which has led to an increase in both futures and spot market prices.

Impact of Delayed Sowing and Agricultural Delays
This year, prolonged rainfall during the kharif season caused a delay in the harvest of several crops, which, in turn, led to a delay in sowing. The delay in sowing has affected not only coriander but other crops as well. According to the Gujarat Agriculture Department, by November 11, only 382 hectares of land had been sown with coriander in the state, compared to 4,599 hectares during the same period last year. This significant drop in sowing indicates a potential decline in production this season.

On average, the sowing of coriander in Gujarat over the past three years has been around 158,440 hectares. With a reduction in sowing area this year, production is expected to fall, which is driving the bullish trend in the futures market.

Sowing Shortfall in Rajasthan
Rajasthan is also seeing a delay in the sowing of coriander and cumin (jeera). However, cumin production was strong last year, ensuring sufficient availability, and this has not had a significant impact on the futures market for cumin. On the other hand, the delay in coriander sowing is pushing up its prices in the futures market.

Thus, the reduction in coriander sowing and unfavorable weather conditions are strengthening the futures market, and there are expectations for further price increases in the coming months.