Fennel Prices Expected to Stabilize: High Production and Low Prices Create Market Dynamics
Limited Export Trade Affects Fennel Prices
Due to limited export trade, fennel prices have decreased, but a further decline is unlikely as daily arrivals decrease. Prices are currently much lower than last year, attributed to high production in the country, which led to a record decline. At present, prices are at their lowest levels. If demand increases, prices might improve in the coming days.High Production Leads to Price Fluctuations
- This season, the sowing area in producing states increased, resulting in an estimated production of 3.8-3.9 million bags (one bag equals 55 kg) compared to 2.0-2.1 million bags last year.
- The high production reduced export prices to $0,78 per kg in recent days, but increased demand raised them to $1,06 per kg.
- Despite this, current export prices have fallen to $0,92 per kg, with no buyers at these rates.
- Last May, export prices were $2,34 per kg.
- In Rajasthan's Nagaur and Merta Mandi, fennel prices fell from $2,34 per kg last year to $1,20-$1,32 per kg.
The fennel market has experienced significant price drops due to high production and limited export trade. However, with decreasing arrivals at production centers, further declines are unlikely. If demand increases, prices are expected to stabilize and potentially improve in the coming days.
