Exciting prospects await the coriander market as investors who reaped profits from cumin have now set their sights on coriander. These astute investors foresee a substantial long-term boom in the coriander industry. However, the current demand for coriander export remains sluggish.
Coriander exports have witnessed significant growth this year, with an estimated 60,000 to 70,000 tonnes expected to be exported during the current season. This represents a substantial increase from the 48,656 tonnes exported in 2021-22 and the 5,482 tonnes exported in 2022-23. In April 2023 alone, 11,487 tonnes of coriander were exported, surpassing the 4,021 tonnes in April of the previous year.
Prices may rise
Due to the lower price of coriander in the current year, domestic demand has soared. This increased demand has accounted for over 80% of coriander sales this year. Coriander arrivals have been declining in every state, leading to increased investment demand. In the short term, coriander prices are projected to rise, with a significant long-term surge on the horizon.
Madhya Pradesh is expected to witness a 40% decrease in coriander sowing, which could further drive prices until Diwali, according to market veterans. While arrivals have decreased in Rajasthan and Madhya Pradesh, except in Guna and Kumbhraj, the appearance of black and yellow coriander has increased over the past three days.
As physical demand currently stands at only 25% of normal levels, the export demand continues to grow. With good rainfall, the market from North and South India is expected to increase. The estimated coriander crop in Gujarat stands at one crore sacks, with approximately 78 to 80 million bags already available. Farmers possess an estimated 20 million bags of coriander stock, while traders and stockists hold 25 to 30 lakh bags. Saurashtra houses 175 to 200 coriander mills, of which only 25 to 30 are currently operational due to limited coriander arrivals.
The presence of stocks with influential farmers will drive prices higher, resulting in increased market arrivals. Anticipated demand from South and North Indian states will further support the coriander price surge.
The future of the market looks promising, with a short-term hike and a long-term boom on the horizon.