Coriander: Coriander up 40% on lower output, high local demand

Though the sowing area was less in Madhya Pradesh and Rajasthan this time, the yield was better.

Apr 08, 2019, 08.13 AM IST

BCCL

Another factor for the price rise is the robust purchase by curry masala companies, for which coriander is a key ingredient.

Kochi: Fall in

output

and increase in local

demand

have lifted

coriander

prices about 40 per cent higher than last year’s price of around Rs 70 per kg. As harvest is getting completed in the chief producing states of Madhya Pradesh, Rajasthan and Gujarat, the industry expects a decline in

production

this year.

“It is likely to be 15 per cent less than last year’s,” said PCK Maheswaran, partner, PC Kannan Co. He said the carryover stock is likely to be less by 10-15 per cent. The Spices Board’s estimate for 2017-18 crop was around 8,66,000 tonnes.

Though the sowing area was less in Madhya Pradesh and Rajasthan this time, the yield was better. But the crop in Gujarat is expected to be 25 per cent less as lower prices and insufficient rain forced people to shift to other remunerative crops, said Maheswaran. The three states together account for 90 per cent of the total coriander production. Another factor for the price rise is the robust purchase by curry masala companies, for which coriander is a key ingredient. “They are buying heavily as they fear a shortage later. They prefer the new stock to the older one,” said V Kartik, partner, Asian Spices.

The coriander April contract for delivery at National Commodity and Derivatives Exchange (Ncdex) closed at Rs 71. 47 per kg, higher than the mandi price of Rs 70 per kg. A year ago, the price was around Rs 50 per kg. The industry expects prices to move up in the coming weeks. “Prices have to stabilise, otherwise imports could happen,” said Ritesh Kumar Sahu, analyst at Angel Commodity Broking. Russia and other Eastern Europe countries are good producers of coriander.

Also Read

Bullish outlook for coriander as sowing acreage falls

Agriwatch: Coriander, chana and castor dip in futures market

Cartel behind coriander dumping spree?

Agri-commodity: Crude palm oil, coriander gain on uptick in demand

Coriander rates fall, masalas turn cheaper

Commenting feature is disabled in your country/region.

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service

Source

Author: Prakash Poojary

Business Analyst

Leave a Reply