Weekly Review-Coriander

16-Nov-2024 07:38 PM

Coriander rises on news of reduced sowing

Weekly Review – Coriander Market

Price Overview
Coriander prices have remained firm this week, largely driven by a reduction in sowing areas and bullish sentiment in both spot and futures markets. The price surge is attributed to ongoing news of reduced sowing, tight local supply, and an anticipated rise in export demand.

Sowing Decline
Coriander sowing has decreased significantly in key producing states—Gujarat, Madhya Pradesh, and Rajasthan. In 2023, coriander was sown on 4.95 lakh hectares in these states, but the area has dropped to 3.64 lakh hectares in 2024. For 2025, it’s expected that sowing will fall by an additional 10–15%. This continued reduction in sowing is due to farmers receiving lower prices for their produce, impacting their decisions to plant the crop. In Gujarat, sowing is reported to be delayed by 15-20 days this season. The ongoing sowing trends in all major states signal a lower crop yield, further tightening supply in the coming months.

Price Dynamics
Spot prices for coriander have increased by Rs 200-300 per quintal due to the bullish market sentiment, primarily driven by expectations of reduced crop production. Futures contracts also show an upward trend. Coriander for November opened at Rs 7014 and closed at Rs 7308, while December futures rose from Rs 7348 to Rs 7400. Sources suggest that coriander prices could continue to rise by Rs 8-10 per kg before the new crop arrives, with expectations of increased demand ahead of Ramzan in February, which often boosts exports.

Export Trends
While local demand is picking up, export demand remains relatively weak, contributing to a decline in coriander exports during the first half of the financial year. Data from the Spices Board show a dramatic 62% drop in coriander exports between April-August 2024, compared to the same period in 2023. Exports during this period amounted to just 25,194.82 tonnes, down from 67,120.65 tonnes in 2023. However, the total export figure for 2023-24 saw a record high of 108,624 tonnes, and a reduction is expected for the current season due to low production and high prices.

Market Arrival Trends
The arrival of coriander in major markets has decreased, attributed to competition from other crops like soybean, maize, and peanuts. Except for Gondal Mandi in Gujarat, where arrivals are relatively stable, other major mandis are seeing a significant reduction in coriander supplies. In Madhya Pradesh, coriander arrivals have been minimal outside of Guna Mandi, while in Rajasthan, Ramganj Mandi is seeing 2,000-2,500 bags, and markets like Kota and Baran have reported only 400-500 bags.

Sowing Progress
As of November 11, sowing in Gujarat has been reported at just 382 hectares, a sharp decline from 4,599 hectares last year. This marks a significant reduction from the 1.25 lakh hectares sown in Gujarat during the previous year. Similarly, sowing in Madhya Pradesh (1.88 lakh hectares in 2023) and Rajasthan (50,000 hectares in 2023) is expected to be lower this year.

Outlook
Market sentiment remains bullish as traders expect a further rise in coriander prices due to the reduced sowing and the possibility of higher export demand, especially during the upcoming festive and seasonal periods like Ramzan. With sowing areas still on the decline and no immediate prospect of imports, the market is likely to see further price increases in the coming months.