Coriander prices are poised to climb, presenting a challenging scenario for traders. Despite a slight market dip due to increased deliveries, the upcoming season promises bullish outcomes. Farmers, influenced by soaring cumin prices, have curtailed coriander sowing, and reports indicate a notable reduction in coriander cultivation areas.
Weather Woes and Crop Concerns
A 16-17 percent decline in coriander sowing across Rajasthan, Gujarat, and UP MP raises alarms. Adverse weather in Madhya Pradesh’s Neemuch Mandsaur Kumbhraj Javra Ratlam line is anticipated to impact coriander crops. Unfavorable conditions persist in Rajasthan’s Kota Bara Ramganj Sawai Madhopur line, potentially causing damage due to inadequate sunlight. The reduction in coriander cultivation is attributed to the significant drop in prices in November, prompting farmers to opt for cumin cultivation.
Stocks, Prices, and Arrival Trends
The current market scenario reveals a decline in rain-touched goods in Madhya Pradesh, leading to a 74 percent reduction in stock. Meanwhile, the winter oilseed acreage sees a positive uptick. Groundnut areas, however, witness a decrease. Coriander prices are experiencing a surge in producing areas like Kota, Bundi, Baran, Sawai Madhopur, Bhawaniganj, and Jhalawar. Good quality coriander is commanding higher prices, reflecting the market’s response to reduced arrivals.
Awaiting New Crop and Future Predictions
As the market braces for the upcoming months, prices for coriander have started to rise. Arrival data from producer markets indicates a decrease in daily arrivals to 4200/4300 bags, leading to increased prices. The anticipation of a reduced yield by 16-17 percent fuels concerns about future sown crop quantities. Factors such as ongoing weather shocks will determine productivity and overall production.
Gujarat’s Influence and International Impacts
Gujarat farmers, lured by lucrative cumin prices, have significantly reduced coriander cultivation. Additionally, reports suggest decreased coriander sowing in neighboring countries. With domestic stock dwindling to one-fourth the usual, the current market prices are considered suitable for trading.
Conclusion
In conclusion, the coriander market stands at a crossroads. Weather challenges and reduced sowing pose potential threats to the upcoming harvest, reflecting declining stocks. The current price surge, driven by diminished arrivals and global influences, marks a crucial juncture for traders.