Coriander Prices to Increase Drastically in Coming Days

A recent panel discussion held by the Federation of India Spice Stockholders (FISS) stated that the price of coriander could increase from $1,69 to $2,21 per kg in the coming days. However, according to the panel experts, the spice cost is unlikely to go below $1,10 per kg.

Why The Price Will Stay Up?

During the discussion, the reasons for high coriander prices were highlighted:

• The stock for 2022 is very low for the spice.
• The sowing area was already down from 303,89 hectares last year to 226,58 hectares this year.
• In Rajasthan, old stock is reduced by 50 per cent, while the production is low by 33 to 34 per cent due to the unfavourable weather.
• Madhya Pradesh and Gujrat’s production is down by 33-34 per cent and 18,3 per cent, respectively.
• Rajasthan and Madhya Pradesh are expected to deliver 1,5 million and 3 to 4 million spice bags this year, respectively. Each bag approximately weighs 40 kgs.
• The production of coriander is expected to be about 8 million bags.
• This figure is significantly low compared to the spice consumption, which is between 13,5 to 14 million bags.
• According to experts of FISS, the overall production of coriander is down by 25.8 per cent.

All these factors will help the market to be appreciative of the commodity.

Current Scenario 

Lately, the market has experienced a continuous rise. However, on Monday, 7 March, the price went down with the increase in the arrival of the new crop.

The factors that led the market to have the slump are:

• The new crop was of inferior quality. It had moisture content. However, the crop’s moisture content is expected to decrease in the next 10 to 15 days.
• The old stock arrived in limited quantity.

The buying activity was down due to all these factors. Also, the farmers and traders refused to sell the product at a low price, expecting the price to move up in the coming days.

Prediction 

As the new crop arrival increases, there can be a bit of correction in the price in the coming days. With the weather being good, the moisture content will decrease, thus improving the crop quality. However, since the supply is low against the demand, the market for coriander is expected to stay bullish this year in the long run. Therefore, the price correction occurring now or in the upcoming days is predicted to be temporary.

Price Trend

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