The coriander market in 2023 presented a dynamic and challenging environment, influenced by a myriad of factors, including climatic conditions, shifting cultivation patterns, and global trade dynamics. This report offers a detailed analysis of these factors and their implications on the market.
Market Overview
Early Year Dynamics
January Price Surge: The year started with a significant 15% increase in coriander prices, primarily due to a substantial 20% reduction in arrivals compared to the previous months. This reduction was attributed to delayed harvesting and lower yields in some regions.
February-March Price Decline: Subsequently, the market experienced a downturn with a 10% decline in prices. This was caused by a 35% increase in arrivals, overwhelming the market and leading to an oversupply. The decline was further exacerbated by a tepid demand both domestically and internationally.
Mid-Year Fluctuations
Quality Concerns: During this period, nearly 40% of the coriander crop suffered from high moisture content, significantly affecting its market value and reducing its suitability for longer-term storage and export.
Government Initiatives: In response to these market pressures, government schemes like ‘One District One Product’ were implemented in regions like Madhya Pradesh, aiming to boost coriander cultivation by 25%. These initiatives were designed to enhance the quality and quantity of the produce.
Summer Shifts
May Uptick in Prices: In May, there was a noticeable 12% increase in coriander prices, primarily driven by a surge in export demand, especially from China, which accounted for a 30% increase in export volume.
Russian Imports: The market dynamics were significantly influenced by the influx of Russian-imported coriander. Priced about 20% lower than domestic produce, these imports offered a cheaper alternative, impacting domestic market prices and farmer sentiments.
Late Year Recovery
Increased Demand from Middle East and Bangladesh: The market witnessed a 15% surge in demand from countries in the Middle East and Bangladesh. This increased demand contributed to a gradual price rise and helped stabilization of the market.
Price Recovery: Towards the latter part of the year, coriander prices saw an 8% increase. This recovery was driven by a combination of reduced supply due to lower sowing areas and a sustained increase in demand.
Year-End Summary
November Price Appreciation: Notably, in November, there was a 6-7% appreciation in coriander prices over a span of a few weeks. This trend was largely driven by a 10% reduction in sowing areas in key states, indicating a tighter supply in the market.
Overall Market Dynamics: By the end of 2023, the coriander market had experienced an overall price increase of 5% compared to the beginning of the year, signaling a recovery from the earlier fluctuations.
Detailed Analysis
Sowing and Cultivation
Sowing Area Reduction: The sowing area for coriander in major producing states such as Gujarat, Rajasthan, and Madhya Pradesh saw a significant reduction of 50-60%. This reduction was influenced by factors like water scarcity, unseasonal weather conditions, and a shift in farmer preference toward other crops.
Cultivation Shifts: Faced with challenges such as water scarcity and lower profitability, many farmers in these regions shifted to alternative crops, including white chickpea and cumin, which are less water-intensive and potentially more profitable.
Harvesting and Production
Harvest Challenges: The coriander crop faced several challenges during the harvesting period, including unseasonal rains that led to high moisture content in the crop. These weather anomalies adversely affected the quality and yield of the coriander.
Production Estimates: Despite these challenges, the total estimated production for the financial year 2022-2023 was around 18-19 million bags, with significant contributions from major producing states like Gujarat.
Domestic Demand and Supply
Supply Surplus: Throughout the year, the coriander market experienced a surplus in supply, predominantly due to increased arrivals and fluctuating demand patterns. This surplus at times led to a downward pressure on prices.
Quality Impact: The high moisture content in approximately 40% of the crop had a detrimental effect on its marketability and pricing, as it reduced the crop’s shelf life and export potential.
Export Dynamics
Export Demand: The export demand for coriander, especially from China, was a key driver in the market dynamics. The year saw 330-350 containers being shipped to China, indicating a robust demand. Overall, the total export was anticipated to jump to 62-65 thousand tons.
Actual Exports: The export volume saw a substantial increase, with more than 11,500 tons being exported in March 2023 alone, a significant rise compared to 3,000 tons in the same period of the previous year.
Price Fluctuations and International Impact
Price Trends: The coriander market experienced various price fluctuations throughout the year, beginning with a decline, followed by a mid-year recovery, and culminating in a year-end appreciation.
Russian Imports: The import of nearly 23,000 tons of coriander from Russia played a notable role in influencing domestic prices and market perceptions.
Southeast Asian Market: There was also an increased demand from Southeast Asian countries like Thailand, Philippines, and Malaysia, contributing to the overall export volume.
Other Trends
Climate Impact: Climatic conditions such as unseasonal rains and sandstorms, especially in regions like Rajasthan, had a significant impact on both the quality and quantity of the coriander crop.
Cultivation Preference: A noticeable trend was the shift in farmer preference towards more lucrative or less water-intensive crops, influenced by factors like market prices, climatic conditions, and water availability.
Conclusion
The coriander market in 2023 was a testament to the complexities and volatilities inherent in agricultural commodity markets. It was influenced by a multitude of factors, including climatic anomalies, shifting cultivation patterns, domestic and international market dynamics, and government interventions. The market demonstrated resilience amidst these challenges, eventually showing a recovery towards the year’s end. This analysis underscores the importance of strategic planning, market analysis, and adaptability for stakeholders in the agricultural sector.
Import/Export Statistics
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