Coriander Markets Trading Firm- Further Gains Likely in Coming Weeks

Dhaniya /Coriander have offered good returns for farmers since last two years. Prices overall are in upward trend since October 2018, when the NCDEX specified grades were trading at 6-year low of Rs 4300-4400 per quintal roughly. At present prices for the same are trading around Rs.6800/quintal. Major reasons attributing for lower prices was enhanced supplies of coriander, from record production numbers during 2016-17 and 2017-18, in addition to rise in imports from Russia.

Reports of lower acreage following irregular monsoon rains and suppressed price levels since last two seasons had kept farmers away from sowing coriander in the country. This supported prices 2018 October onwards.  Cheapening offers in the country attracted stocking interest as well as purchases from overseas markets. These factors also contributed in keeping wholesale/retail prices of Coriander higher.

Last year, coriander acreage were lower by almost 30-40 per cent due to deficient monsoon rainfall in Gujarat and most areas of Rajasthan, and farmers opting for other Rabi crops like wheat, Chana in Rabi season of 2018-19, hoping for better returns from these commodities. Also, higher prices in major coriander exporting nations during the second half of 2018 and improving demand for Indian coriander kept prices firm in marketing year of 2019. As per traders’ consensus India’s Coriander production for 2019-20 was closer to 26.9 Lakh tonnes versus 33.4 Lakh tonnes in 2018-2019. Prices were higher this year as well, due to drop in ending stocks for 2019-2010 marketing year versus 2018-2019 marketing year. Steady export/local demand also supported the markets in 2020. 

Coriander is basically a Rabi crop where sowing starts in October and arrivals normally begins February onwards and extends until July-August. But the peak arrivals are seen usually between March and April in spot markets/mandis. Madhya Pradesh, Gujarat and Rajasthan are the main coriander producing states in the country, accounting for 85-90 per cent of production. The top coriander seed export destination is Malaysia, Pakistan and the UAE. Coriander in powdered form mostly exported to South Africa, the UK and the UAE. Coriander is a fragrant, antioxidant-rich herb that has many culinary uses and health benefits. It also has properties of keeping blood sugar levels lower, fight infections, and promote heart, brain, skin, and digestive health.

EARNING OPPORTUNITY REMAINS BRIGHT FOR FARMERS:

Current offers of the NCDEX specified grades have appreciated by roughly 400 rupees on a quintal in last one month on lowering arrivals and improving local demand on the back of festive season. Still trades are being materialized at prevailing offers, which implies that demand for coriander remains healthy. As a result prices have not fallen much from current levels since last 2 weeks. Ending season Inventory levels of previous season’s crops will be another aspect in keeping prices firm as buyers will not have much option to negotiate the deals with any significant discounts from sellers, on outlook of further gains in price offers. In fact tendency of sellers to offer their produce is most likely to increase for next few months due to limiting availability, exports resuming and festival influenced demand.  Export inquiries are increasing as lockdown restrictions are being lifted gradually.

Therefore, coriander or Dhaniya prices are most likely to appreciate further from current levels and majority of traders/stockists see possible gains of Rs.500-700/quintal from prevailing offers in next couple of months. As such, farmers should hold Dhaniya as of now and should start selling gradually once prices move above Rs.7200-7300/quintal in near future.