India: Coriander Prices Keep Increasing

Despite the month starting on a low note, the Coriander market remained bullish throughout February. Unfortunately, due to the war in Ukraine, there was a bit of upheaval in the commodity price on Thursday. But the market revived on Friday. The good demand for spice and increased activity in the market kept the northbound trend going for the commodity.

Current Scenario 

The stockists have gone in overdrive with their purchases. This is due to the news of lower production in the market and the old stocks being down. So they are purchasing the new and the old supplies arriving in the spot markets.

• The arrival of new crops is low compared to last year, but there is a slight increase in the quantity of the new crop every day in Gujarat.
• The old crop that is considered better than the new crop arrives in low quantity.
• The new crop has a moisture content between 12 to 15 percent.
• The unfavorable weather last year, mainly the unseasonal rain, damaged the standing crop and the quality of the seeds.
• With the weather becoming favorable, the moisture content in the new crop is expected to decrease.
• Compared to last year in Madhya Pradesh and Rajasthan, new crops’ arrival is less than the previous year, and the quality is not excellent either.
• There is a delay in the arrival of the new crop in the market. It is due to the failure of the produce to ripe on time because of the waterlogging.
• The overall coriander production is down from 341,435 MT last year to 307,441 MT.
• The central producing states, i.e., Gujarat, Madhya Pradesh, and Rajasthan, have decreased the production by 10 to 15 percent compared to last year.

Prediction 

According to seasoned traders, this is an untimely increase in the price, and it might backfire later in the year. But some markets experts believe that price shooting up for the spice will continue.

However, it is mainly the stockists who are currently buying the commodity and putting it in the cold storage, not the small vendors and traders. Experts opined that it is this trend that is helping the market to stay northbound for the spice. The market in the coming days can experience a bit of correction due to the increase in the arrival of new crops, but in the long run, the market for coriander will stay between firm and steady.

 Price Trend 

Coriander Eagle 5% Split

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