Weekly Review-Coriander
07-Dec-2024 07:52 PM
Will coriander repeat the history of 2022 in 2025?
The article examines the outlook for coriander production, prices, and trade dynamics in India, particularly in light of the situation in 2022 and the expectations for 2025.
Key Highlights:
Reduction in Sowing Area:
- Coriander sowing in major producing states like Gujarat, Madhya Pradesh, and Rajasthan has decreased by 20-30% compared to last year. This is attributed to farmers opting for higher-paying crops such as wheat, gram, and garlic.
- According to the FISS seminar held in March 2024, the sowing area for coriander in 2024 is estimated to be around 3.64 lakh hectares, a drop from 4.95 lakh hectares in 2023.
Production Estimates:
- For 2024, coriander production is estimated at 1.15 crore bags, down from 1.62 crore bags in 2023.
- For 2025, based on current sowing trends, production could be limited to 75-80 lakh bags, assuming favorable weather conditions.
Price Dynamics (2022 vs. 2025):
- In 2022, low production led to a bullish market sentiment, with coriander prices rising significantly. However, the market was later flooded with imported coriander, especially from Russia and Bulgaria, which tempered price increases.
- Traders now expect prices in 2025 to surpass those of 2022, due to reduced domestic production and the absence of imports from key suppliers like Russia, which is also facing lower production this year.
Price Trends:
- The current price for Eagle quality coriander is around Rs 72-75 per kg, while Badami quality is priced at Rs 65-70 per kg. There is an expectation that prices could rise by Rs 8-10 per kg before the new crop arrives.
- Given the delay in sowing this year (by about 15-20 days), the new crop will also arrive later, potentially keeping prices higher.
Imports and Exports:
- Despite sufficient domestic production, coriander imports continue due to the lower quality of foreign goods, which are often used in mixing. In 2022-23, coriander imports reached a record 31,383 tonnes, a significant increase from 8,777 tonnes in 2020-21.
- Exports have been declining, with a 59% drop in the first half of 2024-25 compared to the previous year. Export volumes dropped from 71,931 tonnes in April-September 2023 to 29,661 tonnes in the same period in 2024.
Conclusion:
Looking ahead to 2025, the coriander market is expected to experience higher prices, similar to the trends seen in 2022, driven by reduced domestic production and low import availability. However, it remains to be seen whether the market will face the same disruptions due to imports as it did in 2022.