Dhaniya Prices Drop Over 2% Amid Steady Domestic Supplies by Amit Gupta, Kedia Advisory
Dhaniya prices have declined by over 2% in the past month due to sufficient supplies in domestic markets. Although new crop arrivals have started, they remain slow, with steady supplies expected from March onwards. Acreage in Madhya Pradesh has decreased, while Gujarat and Rajasthan have maintained stable sowing levels. The total estimated coriander crop production stands at 1.15 crore bags, with a lower carry-forward stock of 50-60 lakh bags, leading to a tighter balance sheet. While coriander seed exports surged by 119% in FY 2023-24, recent data from April-November 2024 shows a 60% decline, with reduced shipments to China, Bangladesh, and the U.S., while exports to Sri Lanka, UAE, and Canada have increased.
Key Highlights
* Dhaniya prices dropped over 2% due to steady domestic supplies.
* New crop arrivals are slow but expected to increase from March.
* Madhya Pradesh’s acreage declined, while Gujarat and Rajasthan remained stable.
* Coriander seed exports surged by 119% in FY 2023-24.
* April-November 2024 exports declined by 60%, impacting major markets.
Dhaniya prices have dropped by over 2% in the past month as domestic supplies remain stable. Despite slow new crop arrivals in some markets, steady inflows are expected to gain momentum from March, potentially impacting price direction.
On the production front, Madhya Pradesh has seen a decline in acreage, while Gujarat and Rajasthan have maintained stable sowing levels. Trade estimates suggest that the new season crop will yield approximately 1.15 crore bags, with Gujarat contributing 45 lakh bags, Rajasthan 20 lakh bags, and Madhya Pradesh 50 lakh bags. The lower carry-forward stock of 50-60 lakh bags, compared to last year’s 1-1.15 crore bags, has tightened the overall coriander supply balance.
In terms of exports, coriander seed shipments saw a remarkable 119% increase in FY 2023-24, reaching 96,390.65 tonnes compared to 44,088.13 tonnes in the previous year. However, during the April-November 2024 period, exports declined by 60% to 29,589.90 tonnes from 73,183.36 tonnes. Major export destinations, including China, Bangladesh, Saudi Arabia, and the U.S., reported significant drops in imports, while shipments to Sri Lanka, UAE, Oman, Canada, Bahrain, and Australia showed an uptick.
Finally
Dhaniya prices remain under pressure due to sufficient domestic supplies, while tight stock levels may influence future trends. Export fluctuations indicate shifting demand patterns in international markets.
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