Challenges and opportunities arise in coriander production as the arrival of new coriander in producer markets evolves. The following challenges in central producing states like Gujarat, Madhya Pradesh, and Rajasthan, fueled by unfair pricing, have reduced production expectations compared to the previous year. The market now anticipates the challenges posed by lower production and the promising potential of new arrivals.
Current Market Scenario and Arrival of New Coriander
As the new coriander hits the markets in states like Gujarat, Madhya Pradesh, and Rajasthan, concerns loom over the crop’s moisture content, ranging from 20-30 percent. Various markets, such as Gondal in Gujarat and Kumbhraj in Madhya Pradesh, witness the arrival of new coriander, with price fluctuations contingent on quality. Traders eagerly await the arrival of dry goods by the end of February, expecting a shift in the market.
Production Challenges and Estimations
Due to less sowing in the producing centres, coriander production is projected to be around one crore bags, a significant drop from the previous year’s 1.5 million bags. The sources suggest that Gujarat’s production may decline from 7.5-7.8 million bags last year to 4.0-4.2 million bags this year. Similarly, Madhya Pradesh’s estimated production is expected to drop from 6.8-7.0 million bags to 3.5-4.0 million bags. Traders report a decline in yield, emphasising challenges faced in coriander cultivation.
Regional Insights and Export Trends
While the coriander crop remains favourable in Rajasthan’s Ramganj line, concerns arise over potential reductions in the Kota and Baran lines, predicting a decrease in production from 2.0-2.1 million bags to 1.6-1.8 million bags. The surplus stock from the record production of the previous year has created an oversupply. This year, 4.0-5.0 million bags are estimated to be in the production centers. This surplus, combined with the low production forecast, drives a bullish trend in the market.
Impact on Prices and Exports
Low production sparks a bullish trend in the market, hinting at increased purchasing by stockists as the arrival of dry goods approaches. Export demand remains steady due to low prices, contributing to the upward impact on coriander prices. Market sources predict a robust coriander price trend throughout 2024.
Conclusion
In conclusion, the coriander market faces challenges in the middle of the new arrivals and production estimates. Despite lower production expectations in central states like Gujarat, Madhya Pradesh, and Rajasthan, the market anticipates favourable pricing trends. With steady export demand and upcoming dry goods, coriander prices will remain robust throughout 2024, signalling market resilience.
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