Increased Coriander Deliveries Impact Prices
Increased coriander deliveries in the futures market have prompted stockists to release their stock into the producer markets, leading to a slight softening of market prices today. Despite this season’s lower productivity and previous price surges that initially encouraged stockpiling, the market has shown signs of stabilizing, with continued advice for traders to keep selling.
Weather Impacts Yield
Significant challenges in key producing areas have affected coriander production. Rajasthan, Gujarat, and parts of Uttar Pradesh and Madhya Pradesh have seen a 16-17% decline in coriander output. Regions like Neemuch, Mandsaur, Kumbhraj, and Javra Ratlam in Madhya Pradesh were particularly impacted by adverse weather, damaging the crop early in the season. Similar unfavorable conditions in Rajasthan’s Kota, Baran, Ramganj, and Sawai Madhopur further compounded the situation, leading to decreased yields and damaged crops.
Price Trends and Stockist Response
Despite the challenges, a recent market surge by USD 0,07-0,08 per kg sparked panic selling among stockists. However, as the market adjusts, prices for premium coriander varieties like ‘good almonds’ are now at USD 1,17 per kg, with ‘Eagle’ quality at USD 1,24 per kg. Rain-affected coriander is trading between USD 1,03-1,06 per kg. The overall price has adjusted down from USD 0,98 per kg to about USD 0,96-0,97 per kg, reflecting the increased supply and the stabilizing market.
Conclusion: Market Volatility
The coriander market is currently experiencing a phase of adjustment after initial volatility. With increased supply now influencing market prices, traders should remain alert but ready to sell, balancing the management of supply shortages with responsive market strategies to optimize outcomes and minimize potential losses.
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