MUMBAI, 22 April 2025: Coriander is considered an auspicious spice when we begin good works. But farmers doing good work of coriander farming are troubled and feeling ominous at this time. Farmers who cultivate coriander at the time of sowing of the crop of Rabi season with smiling faces have become sad as the season begins.
Experts sitting in Market yards during the final phase of planting had estimated that coriander’s seedlings would be lower this time. So, prices will go up when the season starts. But looking at the price chart of the last three months, anyone can understand why farmers are worried. During this period the coriander prices never Bullish.
On 14 January 2025, coriander’s futures price was INR 8,800 per quintal, decreasing continuously over time, remaining INR 7,600 per quintal on 16 April 2025. That’s the cause of the problems of farmers.
Now new arrivals are increasing. Last week, on average 40,000 sack corianders were arrived in Gujarat’s Market yards every day. Among the burden of new goods, it is unlikely that farmers will get a price of INR 8,800 again. However, some farmers bought Put Options at a price of INR 8,600 in NCDEX option trade in January, and paid a premium of around INR 500. These farmers have benefited a lot today.
The Put Options traded in January on Exchange platform was to be delivered in April. Now while the coriander’s sentiment has fallen to INR 7,600, farmers have benefited in giving their goods in the futures. They will get an earlier price of INR 8,600.
Apart from this, there has been a lot of fluctuations in premium during this time too. The premium, which was INR 500 at one time, had increased to INR 1,000 during this period. At that time, there would also be direct benefit by selling premium to some farmers. Such farmers do not need to worry about delivery even after the deal has been fixed. Exchange data show that farmers bought Put Options of about 450 tonnes of coriander.
A survey of trading sources had estimated that coriander cultivation in Gujarat has increased this time. While there were reports of lower acreage in Rajasthan and Madhya Pradesh. However, it is said now that production will increase not only in Gujarat but also in Rajasthan. That’s why coriander prices are constantly falling.
Earlier an Industry survey concluded that this time 1.11 crore sack coriander would be produced in the country. In 2024, 1.16 crore sack coriander was produced. However, according to the new estimates production in Rajasthan is expected to rise compared to the previous estimate. Prices are declining due to increased news of BADAMI coriander production, especially in Hadauti region- Ramganj, Kota and Bara regions are expected to increase production.
Data of The Union Ministry of Commerce show that India exported 49,000 tonnes of coriander in FY 2024-25. which is half of last year’s exports. However, the exports figures of the last 10 years show that India’s annual coriander exports in range of 35,000 tonnes to 50,000 tonnes on average. The exports only last year were 109,000 tonnes.
In the current situation, the income of new coriander from farmers continues to rise, but there is no special demand from exporters. The season of coriander’s new purchase is going on in local markets, but it’s not enough factor to change bearish mindset of market. If there is no new purchase demand from exporters, this season may fade for farmers.
By Kalpesh Sheth is an comodities expert with years of experience.
Image credit: reluctanttrading.com
