Rising Supplies Challenge Fenugreek Market Prices

The fenugreek market is under pressure as new crop arrivals increase significantly. In Neemuch Mandi, daily deliveries have soared to 2,000-2,200 bags, a significant rise from last year’s 1,200-1,300 bags. Javra Mandi is also reporting increased arrivals of 1,200-1,300 bags, up from 800-1,000 bags last year. This surge in supply, coupled with moderate demand, has led to a notable decrease in prices by USD 1.20 to 2.40 per 100 kg in the past week.

Low Prices Despite Stockist Caution

Despite the stockists’ strategy to hold off purchases to reduce existing inventories, fenugreek prices remain low. The market is bracing for small price corrections of USD 2.40 to 3.60 per 100 kg as the new crop is expected soon. Currently, average-quality fenugreek is trading at USD 60 to 70 per 100 kg in Madhya Pradesh markets.

Cultivation Trends Point to Increased Planting

Fenugreek cultivation has expanded significantly this year, with notable increases across major growing states:

• Gujarat: The planting area has expanded to 250,000-300,000 hectares, up from 180,000-190,000 hectares last year.
• Madhya Pradesh: The area has grown by 5-10%, now estimated at 700,000-750,000 hectares.
• Rajasthan: Planting has remained stable at 400,000-420,000 hectares.

Production Shows Promising Increase

Forecasts suggest a promising increase in India’s fenugreek production for this season, estimated between 2.2 and 2.3 million quintals, up from last year’s 1.8 to 2 million quintals. This includes significant contributions from key states:

• Madhya Pradesh: Expected to produce between 1.2 and 1.3 million quintals.
• Gujarat: Anticipated to yield 450,000 to 500,000 quintals.
• Rajasthan: Projected to maintain 500,000 to 550,000 quintals.

This season’s fenugreek exports have seen a significant uptick, contributing to lower stock levels compared to last year. March carryover stocks are expected to be between 250,000 and 300,000 quintals, reflecting a decrease from previous levels of 400,000 to 450,000 quintals. Export volumes have reached 25,167 tonnes from April to October 2024, markedly higher than last year’s 16,489 tonnes.

Anticipating Market Movements as New Crop Nears

With higher production and increased supply, fenugreek prices are poised to stay soft in the near term. Stockists' reluctance to make large purchases and the upcoming arrival of the new crop could lead to further price adjustments. Market participants are advised to monitor these trends closely, especially as exports may offer some support in stabilizing prices.





Click here to reach our trading platfrom CMBroker