Weekly Review-Coriander
01-Mar-2025 07:59 PM
Weekly Review-Coriander
Coriander production and stock expected to be less than last year
Production and Stock Outlook: Coriander production in India is expected to be lower than last year, despite earlier reports indicating production might match last year's figures. In 2024, coriander production was estimated at around 1 crore bags, while 2023 saw production between 1.50 and 1.60 crore bags. The forecast for the current season is around 1 crore bags, but traders estimate the yield to be only 85 to 90 lakh bags. Additionally, the stock levels are also expected to be lower compared to last year. Last March, stock levels at production centers were between 70 to 75 lakh bags, but this year, the stock is estimated to be around 40 to 45 lakh bags.
State-wise Production: The production decline is attributed to reduced sowing areas and delays in sowing. The major producing states are:
- Gujarat: Expected production is around 40 to 45 lakh bags.
- Madhya Pradesh: Estimated production is 30 to 32 lakh bags.
- Rajasthan & Other Areas: Expected production is around 14 to 15 lakh bags.
Delayed Arrivals: Due to delays in sowing, the arrival of coriander in markets has also been delayed. The arrival of new goods was expected to peak in Gujarat by the end of January or February, but now, the pressure of arrivals is expected to be felt in March. Presently, new coriander is starting to arrive in Gujarat markets, with Gondal receiving 38-40 thousand bags, Junagadh 2500-3000 bags, and Rajkot 10-12 thousand bags. The new goods arrival is 5-15% lower than last year, with prices ranging between Rs 6000-9000 per quintal depending on quality. New arrivals have also started in Madhya Pradesh and Rajasthan, but pressure on arrivals will increase post-Holi.
Availability and Consumption: India's combined domestic consumption and export needs are around 1.40 to 1.50 crore bags annually. However, in 2025, total availability is expected to be between 1.30 to 1.35 crore bags, including the estimated production of 85-90 lakh bags and outstanding stock of 40-45 lakh bags. This gap in supply could keep coriander prices strong in the near future.
Price Trends: Traders believe there will be no immediate rise in coriander prices. The arrival of coriander in markets will remain strong in March, which could temporarily stabilize prices. However, once the arrival pressure eases, prices are expected to rise. Currently, coriander prices in producing centers are:
- Eagle: Rs 70-74 per kg
- Badami: Rs 68-70 per kg
Experts suggest that prices could return to 2022 levels, where in April 2022, Eagle coriander was priced at Rs 115-120 per kg, and Badami was priced at Rs 110-115 per kg. If the arrival of other goods puts pressure on the market, prices could dip by Rs 5-7 per kg.
Import and Export Trends: Despite sufficient domestic production, India continues to import coriander due to lower prices abroad. According to the Spices Board, coriander imports reached a record 31,383 tonnes in 2022-23, and 28,828 tonnes in 2023-24. With domestic prices remaining low this season, coriander imports are expected to be lower in 2024-25.
In terms of exports, coriander shipments have significantly dropped in 2024-25. From April-November 2023, 81,045 tonnes were exported, but in the same period of 2024, exports plummeted by 53%, reaching only 38,315 tonnes. The 2023-24 season saw a record export of 108,624 tonnes, but the trend of declining exports may continue in the near future.
Overall, the coriander market is facing a complex scenario with reduced production, lower stock, and fluctuating export trends, leading to uncertainty regarding price movements in the coming months