The coriander market has been experiencing price fluctuations with no signs of substantial growth. The current trend indicates an increase in coriander futures but has not affected the spot market. The primary reason for this lack of growth is the continuous increase in supply. Farmers, traders, and stockists have accumulated significant stocks due to price targets. This surplus supply has eliminated any concerns about a shortage of coriander.
The coriander market in Gujarat has been witnessing a decline in arrival pressure, resulting in reduced daily arrivals. For instance, in Rajkot Yard and Gondal, the arrival of bags has exceeded the usual numbers. Similarly, the arrival of coriander from Madhya Pradesh has decreased by 50%. These factors, combined with the large coriander stock, have limited the potential for price acceleration.
The demand for coriander in China has diminished due to their existing large stock, resulting from the export of numerous containers. Consequently, the price of coriander has decreased in the Chinese market. Gulf countries and Bangladesh have also fulfilled their demand ahead of Bakrid. Furthermore, new coriander crops are expected to enter the market from countries like Syria and Russia in the coming months, further suppressing the export demand.
As the export demand slows, there is a growing perception of coriander as an investment commodity. While other commodities such as cumin, fennel, ajwain, and sowa offer fast returns, coriander remains an affordable option for investment.
Thus, the oversupply of coriander and reduced arrival pressure have hindered its growth and caused price fluctuations. The export demand has cooled down, primarily due to China’s large stock and upcoming coriander crops from other countries. However, this shift has led to an increased perception of coriander as an investment opportunity. Fluctuating prices and a limited possibility of substantial growth characterize the coriander market.