Coriander Conundrum: Assessing Quality and Price Fluctuations

Coriander, the aromatic spice beloved in kitchens worldwide, is in a perplexing pickle. The primary culprit behind its sluggish performance is the dwindling quality of coriander being processed in the commodity exchange. Daily, a hefty 100 to 150 tonnes undergo dematting in exchange warehouses, accumulating a stockpile of 21 thousand tonnes.

Madhya Pradesh’s coriander fields, drenched by untimely rains, face a unique challenge. Premium-quality coriander mingles with its lesser counterparts, tarnishing the overall quality of dematted coriander. While market-purchased top-tier coriander costs $0,89 per kg, warehouse-stored coriander sells for $0.79 per kg, rendering it more affordable. However, the $0.096 discount reflects its inferior quality. The sluggishness is the primary catalyst for the discount applied to subpar-quality dematted coriander. The demat market witnessed a surge in supply between December and February, further pressuring prices downward. This tepid phase is anticipated to persist until January, with a potential price drop.

Quality woes

Importing inferior-quality from Russia has cast a shadow on the market. Russian coriander pales compared to market-purchased top-quality coriander. Russia’s imposition of a seven percent duty on coriander exports has stifled new trade and exacerbated the influx of substandard coriander. Despite these quality woes, there has been a bumper crop. Abundant supplies grace the Gujarat, Rajasthan, and Madhya Pradesh markets. The new season anticipates forwarding 7.0 to 8.0 million bags of old coriander.

A prized commodity

Investors and stockists are betting on long-term potential, showing increased interest in its purchase. The spice’s income is poised for growth, with daily arrivals reaching 30 to 35 thousand bags in Madhya Pradesh, Rajasthan, and Gujarat. However, the short-term impact might result in a minor price drop, after which stability is expected. Amidst a scarcity of high-quality coriander, a nominal premium is being offered, reflecting its rarity. Quality coriander has become a prized commodity, overshadowing the ample supply of subpar varieties.

Exports have tapered compared to the bustling trade of May and June. Nevertheless, a consistent monthly export of 7 to 8 thousand tonnes persists, with the report on coriander sowing looming. The coriander market is poised for evolution, driven by the quest for quality in the world of spices.