Fennel Production in India is Expected to Drop

Fennel production in India is projected to be lower this season compared to last year. Currently, 2,500 to 3,000 bags of new fennel are arriving daily in Kanjha Mandi, Gujarat. With these, arrivals gradually increasing in other markets as well. The delay in sowing has led to a slower harvest, affecting supply volumes.

Reasons Behind Reduced Fennel Sowing

Last season, a record fennel crop led to stable prices between USD 0,06 to 0,10 per kg. This has discouraged farmers from planting more this year. In the major producing states of Gujarat and Rajasthan, the sowing area has decreased, and the early rise in temperatures could impact both yield and quality. Production for this season is estimated at 2.8 to 3 million bags, significantly lower than the 3.8 to 4 million bags produced in 2024.

Current Fennel Prices and Export Performance

At Unjha Mandi, Gujarat, the current export price for fennel is around USD 1,07 to 1,08 per kg. Showing an increase from USD 0,98 to 1,00 per kg a week ago. Despite lower domestic production, the export market remains strong. Last year, India recorded a 135% increase in fennel exports, shipping 62,629 tonnes between April to November 2024, compared to 26,665 tonnes in the same period the previous year.

Impact of Lower Production on Market Prices

The expected production drop may keep fennel prices stable, with only a slight potential decline of USD 0,04 to 0,06 per kg in April, when new crops hit the market in Rajasthan. Traders believe that while there is limited scope for a price drop, the market might remain strong due to steady export demand.

Conclusion: Fennel Market Remains Stable Due to Lower Production

With reduced sowing and potential yield challenges, the fennel market is likely to stay balanced. The strong export performance offers a buffer against price drops, providing stability for both traders and farmers. Those involved in the fennel trade should watch the April arrivals closely, as this period could influence short-term market trends.

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