Increased Production Causes Significant Drop
New Delhi: During the current season, India has witnessed a record slowdown in fennel prices due to increased production. Prices for lighter goods at production centers have dropped to
$0,78-$0,95 per kg, a sharp decline from last year's
$1,80-$2,10 per kg. Market sources believe fennel is currently at its lowest price level, with a potential for a rise as demand improves in the coming days. Farmers had experienced attractive prices for their produce last season, which led to increased sowing.
Favorable Conditions Boost Production
Farmers sowed fennel over a larger area due to the high prices received last season. Fennel was sown on approximately
1.97-2 million hectares in key producing states like Gujarat and Rajasthan, up from less than
1 million hectares in 2023. Favorable weather conditions further supported the crop, resulting in an estimated production of
2.09-2.14 million bags (each bag 55 kg). This is a significant increase from the
1.10-1.16 million bags produced last year.
Record Exports Despite Lower Prices
Despite the price decline, export demand for fennel has remained robust.
- The Spices Board reports that during 2023-24 (April-March), fennel exports reached 39,565 tonnes, up from 20,201 tonnes the previous year.
- In April 2024 alone, fennel exports were 13,396.75 tonnes, a substantial increase from 6,462 tonnes in April 2023.
- At the beginning of the current month, the export price was $1,01 per kg, but it has since decreased to $0,90 due to a dip in demand.
Fennel prices have significantly dropped this season due to increased production and expanded sowing areas. Despite this, strong export demand has helped maintain market activity. As demand improves, prices may see an upward trend in the coming days. Farmers and traders should stay informed about market conditions to make strategic decisions.
