Kochi: Coriander futures prices have shot up in the last two weeks on reports of lower sowing acreage in some of the producing regions. The industry, however, is expecting the prices to stabilise in the short term as overall crop prospects are robust.
The April contract for delivery at the National Commodity and Derivatives Exchange (Ncdex) rose 10 per cent to touch a high of ₹75 per kg on January 1 before declining. Prices are rallying again and were hovering around ₹70 per kg on Thursday. Spot prices were also showing a bullish trend at ₹68 per kg.
“The sowing acreage is lower in Rajasthan, a key coriander producing state. As the sowing was delayed, it seems the farmers have gone for wheat and pulses in their fields,” said PCK Maheswaran, partner at Indore, Madhya Pradesh-based commodity export house P C Kannan & Co. Madhya Pradesh, Rajasthan and Gujarat account for majority of coriander production in the country.
“The sowing has been good in Gujarat and Madhya Pradesh, which has boosted the new crop estimates,’’ Maheswaran said, adding that the carry over stock is likely to be only half of last year.
As a result of inadequate rains, the crop fell over 20 per cent to 567,000 tonnes in 2019, according to Spices Board data. “But the huge carry over stock of around 3 lakh tonnes from the previous year compensated for the shortage in production,’’ Maheswaran said.
The prices flared up to ₹72 per kg at the time of harvest in February-March fuelled by heavy demand from curry masala companies, which bought more anticipating a shortage later. Prices moved in a narrow range of ₹55 to 60 per kg with old stock coming into the market.
Source: Economic Times
