1. Commodity News

Indian Coriander (Dhaniya) Market may appreciate further in coming weeks

Abhijeet Banerjee
Abhijeet Banerjee

Coriander markets in the country traded with positive undertone during most of the week. Over previous week, the most active April futures contract of NCDEX had gained nearly 10 percent. Prices have started gathering strength in last few weeks since lower levels could attract domestic buyers as well as exporters. Spot prices at Jaipur and Gondal had appreciated by 7-8 percent while Kota market was up 10 percent approximately. 

Strong gains in turmeric helped prices to move upwards, in addition to export related queries and ongoing marriage season demand from the domestic centres. Prices started recovering after June 2020 when the corona problems started reducing and exports/domestic trades started picking up. When compared with June prices, the coriander market is currently up approximately Rs. 900/qtl or close to 15 percent.   

Exports of spices and other value-added products during six months of FY21 stood at 7 lakh tonnes. The export of fenugreek, coriander and other seed spices such as mustard, aniseed, dill seed, etc, had grown substantially contributing to the spices export basket in the mentioned period. In Rupee terms the export value is calculated at 12,273.81 crore as against the shipment of 586,090 tonne worth Rs 10,588.97 crore in the year-ago period.  

As per trade sources the final production estimate of Coriander seed for marketing year (MY) 2020-21 is coming between 2.6-2.8 lakh metric tonne. Production in previous year was near to 2.68 LMT, which means production level is near last year. The carry over stock in Feb 2020 was estimated near 25 lakh bags. India’s consumption till March or April may not be lesser than 20-22 lakh bags. Therefore, roughly 2 months remaining for the new arrivals, further usage of the inventories will favor further price appreciation in forthcoming weeks.

Presently the arrivals from few regions of Gujarat have commenced few weeks back, but the supplies are limited. All in all, as long as arrivals from Rajasthan and MP are not intensifying, Dhaniya market may appreciate further, and can touch 7800-8000 levels as well. 

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