Anticipated Improvement Driven by Festival and Export Demand In Coriander
Current Market Conditions and Limited Arrivals
The coriander market has been experiencing a sluggish phase recently. Producers have slowed the supply of coriander in major markets, contributing to a stable but subdued trading environment. The primary reason for this slowdown is the shift in agricultural focus; many farmers have prioritized cumin cultivation over coriander this season. As a result, the area under coriander cultivation in Gujarat has significantly reduced. However, in Rajasthan, the cultivation area has remained nearly the same as last year, with a slight increase observed in Madhya Pradesh.ÂDespite limited arrivals in major markets across key producing states, the demand and off-take for coriander have remained weak. The markets are stable, with minimal fluctuations in price levels. In Rajasthan's Ramganj Mandi, the average daily arrival of coriander is between 3,000 to 3,500 sacks, while Baran Mandi sees about 1,000 sacks daily. The reduced trading activity has prevented any significant price increase. Analysts believe that while the current market sentiment is soft, there is potential for an upturn driven by seasonal and export demand.
Potential Drivers for Market Recovery
Trade analysts forecast an increase in demand for coriander during the upcoming festival season. Festivals typically boost domestic consumption, providing much-needed support to the market. Additionally, there is anticipation of an increase in export demand. Foreign importers are expected to show greater interest in purchasing coriander at current low prices, which could stimulate the market. Despite the current low market activity, there is sufficient stock of coriander in the country. This ensures that both domestic and export demands can be met without any significant supply disruptions.Experts suggest that the price of coriander in the future will largely depend on its domestic consumption and export demand. If export activities and demand from overseas buyers increase, it could create a more positive outlook for the market. However, if prices remain stagnant and there is no surge in demand, farmers may lose interest in cultivating coriander in the upcoming sowing season, which typically begins in October-November.
The coriander market is currently in a phase of stagnation, influenced by limited supply and weak demand. However, there is optimism for a recovery as the festival season approaches and the possibility of increased export demand arises. With sufficient stock levels in the country, the market is well-positioned to meet any surge in demand, both domestically and internationally. Coriander's future price trends will depend heavily on these demand factors.