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Manthan1709

Dec 11, 2024

Fennel Prices Stay Low Due to Record Production

Fennel Prices Stay Low Due to Record Production

Record Production Highlights

India’s fennel production reached 383,900 tonnes in 2024, nearly doubling the 202,100 tonnes recorded last year. The total cultivation area also expanded significantly, from 90,000 hectares in 2023 to 195,000 hectares in 2024.
  • Gujarat: The largest producer, with 123,000 hectares under fennel cultivation.
  • Rajasthan: Contributed 58,000–59,000 hectares.
  • Other States: Madhya Pradesh and Uttar Pradesh accounted for an additional 13,000–14,000 hectares.
Favorable weather and an increase in planting drove this surge in production. However, the oversupply has left farmers struggling with low prices, making it hard for them to recover costs. Farmers in key growing regions, including Rajasthan, are likely to reduce fennel cultivation in the upcoming season. Traders estimate that sowing in Rajasthan could decline by 50–60%, as many growers switch to other crops with better profitability. A smaller planting area may help balance supply and stabilize prices in the coming year.

Exports Rise as Domestic Prices Drop

Falling domestic prices have boosted Indian fennel’s appeal in global markets. Between April and September 2024, fennel exports reached 53,167 tonnes, generating $5.92 million. This was a significant jump from 22,352 tonnes exported during the same period in 2023, which earned $4.55 million.

Average-quality fennel is currently priced at $0,78–0,96 per kg. Traders expect prices to rise slightly, reaching $0,90–1,08 per kg before the arrival of the new crop in January and February 2025. Reduced sowing and steady export demand are likely to support prices in the short term.

Conclusion

India’s record fennel production has kept prices low, creating challenges for farmers while boosting exports. A drop in cultivation next season may reduce supply and bring some price relief. As 2025 approaches, farmers and traders are watching the market closely to adapt to these changes.





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