Indian Coriander Annual Report – 2021

The Coriander Market for 2021 was appreciative compared to last year, started picking up as the year progressed. Across most of the months, there have been continuous ups and downs in the prices. The good demand for the spice led to the overall price increase of Coriander this year compared to 2020.  The lowering of the sowing area might help the coriander price to remain stable and go bullish in the coming months.

Overall Scenario Of Coriander For The Year

• The month of January witnessed a downward trend in the spot market prices for the spice.
• There was not much movement in the market for Coriander in the months of March, April, and May.
• The market was appreciative of the spice in the months of February, June, August, October, and November
• The months of July, September, and December remained to be a mixed bag for the Coriander market.
• Factors that Influenced The Coriander Market
• Good domestic demand for Coriander picked up from the middle of the year. Wholesalers, local mills, and the states of south India increase their demand for Coriander.
• According to market analysts, the local demand is the critical factor that is helping the prices to remain steady for Coriander.
• Furthermore, it was believed that the presence of limited stock of Coriander in the producing centers resulted in the prices going up gradually.
• The price of coriander seed remained firm because of the easing of COVID-19 restrictions and local destination markets opening.
• The festive season impacted the rise in demand for spice, which helped keep the prices stable in the market.
• The upward trend in coriander price also resulted from less arrival of the stock due to the heavy rain on the major mandis across India
• However, the lack of demand for Coriander in the international market became a concern for the farmers and traders of Coriander.
• The price often became bearish when buyers became indifferent due to the heavy rain in different parts of the country.
• There was also at one point in September the demand from Bihar and Bengal has slowed down for the time being
• Any significant purchases from the mills of South India were also low.
• There has also been subdued demand for upper-grade Coriander due to the less demand for the product.
• The price drop was also due to no advance deals for the crop from major mills. For example, it is reported that the advance deal for Coriander this season is 35 to 40 percent less compared to last season.
• Moreover, despite there being the arrival of limited in the markets, it is still higher than the demand, which is also causing the price drop for Coriander
• It was also reported there was less demand for the Upper-Grade Coriander, due to which there was limited arrival of this category of the spice.
• The other factor contributing to the buying activity’s slowness is the crop’s moisture content between 7 and 9 percent. The heavy rains in the past two months have increased the moisture content in the new crops that are being delivered to the market.

Current Situation

• Last year, Coriander was sown in 136,990 hectares in Gujarat.
• So far this year, Coriander has been sown in 123246 hectares. Last year till this date 134413 hectares area was sown.
• So far, the Sowing of Coriander is 89.97% compared to the total Sowing of Last Year and 91.69% compared to this date of last year.
• There is a difference between the official figures in Gujarat and what the traders and farmers are telling. There are reports of 60%-70% sowing in the view of traders and farmers.
• According to Gujarat Agri. Dept, as of 20th December, 123,246 hectares compared to last year’s same period 134,413 hectares.
• Farmers are also waiting for the prices to go up before releasing their crop to the market since they know the spice production is less, and the prices will increase.
• Even Neemach and Mansdour of Madhya Pradesh have reported having decreased their coriander sowing area. The farmers of the region are interested in sowing crops like garlic and ajwain due to the better prices it fetched in the market this year.
• However, the actual acreage of sowing will become clearer after 15 to 20 days.
• As of now, the sowing of Coriander in Rajasthan, Gujrat, and Madhya Pradesh is slow compared to last year and has completed between 40 to 45 of the sowing.

Prediction

There is also the expectation of higher sowing of Coriander this year compared to last year because of good rainfall. Therefore, it is expected that the coriander production will be recorded at 342,435 MT this year, which is less than last year. For the year 2020-21, the production of Coriander was recorded for 352,316 MT. As per the calculation of the bags, this year there will be 300 thousand fewer bags than last year f, i.e., 8.5 million bags compared to the previous year’s 8.8 million bags. Each bag weighs about 40 kgs.

Experts believe that the excellent production of crops this year will benefit the farmers and traders with better prices than last year, and this slump in coriander prices is temporary.

Price

Coriander Eagle 5% Spilt

The trend was the same for all the other coriander varieties during this time.

In the NCDEX, the future of Coriander for December was closed at a gain of $5.12 per 100 kg , which is 4.63% more than the last session during the same time. For the month of January and April, the price was closed at $4.35 and $3.82 100 kg.

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