Challenges in the Coriander Market Due to Stagnant Prices and Declining Exports
Stagnant Prices Due to Limited Arrivals
Coriander, a staple spice in global kitchens, is currently facing significant challenges in the Indian market. Despite limited arrivals, prices have remained stagnant, causing concern among traders and exporters. This stagnation, along with sluggish demand and declining exports, has created a challenging environment for those involved in the coriander trade. The coriander market is experiencing a period of stagnant prices despite limited arrivals. Trade experts attribute this to sluggish demand, which has kept prices from rising. In the local markets, the prices of popular coriander varieties like Badami and Eagle have remained stable, with some even experiencing slight declines. The lack of significant price movement has dampened market sentiment, leaving traders and farmers concerned about the future.In key markets like Ramganj Mandi, farmers are holding back their coriander crops due to unattractive prices. This reluctance to sell has further contributed to the stagnant market conditions. Current arrivals in Ramganj Mandi are around 2,500 to 3,000 bags per day, far below the usual 5,000 bags expected during this period. Similarly, in Baran, another major coriander market, arrivals have been consistently low, averaging around 1,000 bags per day.
Impact on Exports
The stagnant domestic market has had a ripple effect on coriander exports. Last year, attractive domestic prices led to a surge in coriander exports. Along with volumes increasing by two and a half to three times in the fiscal year 2023-24. However, the current financial year 2024-25 has seen a significant decline in exports. This downturn is not just a statistical dip; it has had a profound impact on the industry as a whole.According to the Spices Board of India, coriander exports in April 2024 totaled 6,054.49 tonnes, a sharp drop from the 11,486.60 tonnes exported in the same month the previous year. This 47% decline highlights the significant challenges faced by exporters in the current market. The reduced export volumes have further compounded the concerns of traders and stockists, who are already grappling with sluggish demand and stagnant prices domestically.
Current Market Sentiment and Challenges
The current sentiment in the coriander trade is one of caution and concern. With farmers hesitant to sell at the prevailing prices, market arrivals remain limited. This situation has created a cycle of low supply and stagnant prices, making it difficult for traders to see any positive developments on the horizon. The decline in exports has only added to the challenges, as the reduced demand from international markets further depresses prices.Traders report that the lifting of coriander from the markets has been slow, contributing to a subdued market sentiment. The present environment, marked by limited movement and reduced interest from buyers, does not promise a bright future for those involved in the coriander trade.