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Dhaniya prices on NCDEX dropped over 3% in January 2025, trading at Rs.8,300 per quintal due to heavy arrivals and subdued demand. Increased old stock in the market and reports of strong new crop sowing in Gujarat further pressured prices. Coriander arrivals surged to 9,250 bags in Gujarat, against the usual 500-700 bags. Exports fell by 59.57% year-on-year between April and November 2024, while imports dropped by 68.90%. Despite hopes for export trade recovery, weak activity and favourable weather for the crops have dampened expectations for a price surge. Market participants now await fresh crop arrivals to determine the price trend.

Key Highlights

* Dhaniya prices fell over 3% in January, trading at Rs.8,300/quintal.

* Heavy arrivals and higher sowing weighed on prices.

* Coriander exports declined by 59.57% from April to November 2024.

* Imports also dropped by 68.90% during the same period.

* Favourable weather and abundant stocks limit short-term price recovery.

Dhaniya prices on NCDEX declined over 3% in January 2025, settling around ?8,300 per quintal. The price drop is attributed to heavy arrivals in the market, weak domestic demand, and the influx of old stock as preparations for the new crop progress. Coriander arrivals in Gujarat reached an unexpected high of 9,250 bags, significantly surpassing the usual 500-700 bags during this period. Additionally, Gujarat reported a 2.91% increase in sowing, covering 1,30,731 hectares as of January 20, compared to 1,27,035 hectares last year.

The favourable weather conditions for coriander crops, without significant damage reports, have further added to bearish market sentiments. Despite hopes for export trade recovery, the sector saw a 59.57% drop in exports during April-November 2024, amounting to 29,589.90 tonnes compared to 73,183.36 tonnes in the same period in 2023. While November exports were slightly up by 0.60% year-on-year, month-on-month figures declined by 11.71%.

Imports also faced a significant decline of 68.90% during April-November 2024, at 6,230.45 tonnes compared to 20,030.88 tonnes in the previous year. However, November imports rose 84.10% month-on-month, reaching 1,203.27 tonnes.

With current supply pressures and weak export activity, dhaniya prices are expected to remain under pressure. Traders are now focused on the arrival of fresh crops in the coming weeks, which will likely determine the next price trend.

Finally

Dhaniya prices remain bearish due to heavy arrivals, strong sowing, and weak export activity. Upcoming fresh crop arrivals will guide future price trends.

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