Recent Market Observations

Traders have observed that coriander consumption has been strong over the last two months. If rains occur during the second fortnight of July, local demand is expected to increase further. Coriander production this year is half of what it was last year, leading to expectations of a price rise in the near future.

Coriander trader Ankit Sankhla noted that recently, good quality coriander was sold at $0,96-$1,20 per kg. Prices have since dropped to $0,84-$0,96 per kg. Currently, old stock is still being purchased. Production this year is only 50% of last year's, and if demand picks up after July 15, prices could increase by $0,12-$0,18 per kg. Good quality coriander is still fetching higher prices. There was some export demand in April, and another export surge is expected next month.

Expected Price Increase in Ramganj Mandi

Pramod Mittal from Ramganj Mandi predicts a price rise of $0,12-$0,18 per kg during the second half of July. Improved prices have led to some stockpiling. There is a shortage of old stock and good quality coriander in the market, indicating a potential further rise. Demand for coriander is expected to peak during the sowing season in July and August.

Mihir International from Gondal Mandi expects prices to rise by $0,18-$0,24 per kg in the coming days due to lower stock levels. Coriander production in Gujarat and Madhya Pradesh is 50% less this year. Farmers planted more fennel and cumin due to higher prices, reducing coriander production. After the rains, prices are expected to reach $1,14-$1,20 per kg, up from the current $0,90-$0,96 per kg.

Impact of Reduced Production and Export Demand

A local market trader reported that about 2.5 million sacks of coriander are expected to be exported this season. Production has been halved compared to last year. In January-February, new coriander was priced at $0,54-$0,72 per kg, and those prices have since risen. Dry coriander that was $0,78-$1,08 per kg has increased by $0,12 per kg. Some traders are stockpiling in anticipation of higher prices. The old stock from 2023, which was around 200,000 tonnes, has been significantly reduced. Considering the export demand, prices are expected to rise by $0,18-$0,24 per kg.

The coriander market is poised for a price increase due to strong consumption, lower production, and anticipated export demand. Traders should stay informed and prepare for potential price hikes in the coming months.