The coriander market in India is currently facing a challenging landscape marked by stagnant prices, limited arrivals, sluggish demand, and a notable decline in exports. Despite a shortage of coriander, prices have remained flat, largely due to weak demand that has prevented any significant upward movement. This stagnation is particularly evident in major markets like Ramganj Mandi and Baran, where the prices of key coriander varieties such as Badami and Eagle have shown minimal fluctuations. Farmers in these regions are reluctant to sell their crops at the current prices, contributing to a further slowdown in market activity.

In Ramganj Mandi, arrivals have dropped to about 2,500 to 3,000 bags per day, a stark contrast to the expected 5,000 bags for this period. Similarly, Baran, another significant market, is experiencing consistently low arrivals, averaging around 1,000 bags per day. This reluctance to sell has exacerbated the stagnant market conditions, creating a cycle of low supply and flat prices.

The impact of these domestic market issues is also reflected in the export sector. After a surge in coriander exports last year—driven by favorable domestic prices—the current fiscal year has seen a sharp decline. In April 2024, coriander exports fell to 6,054.49 tonnes, a significant drop from 11,486.60 tonnes in April 2023. This 47% decrease highlights the difficulties exporters face amid weak demand and stagnant domestic prices.

The prevailing sentiment in the coriander market is one of caution and concern. With farmers hesitant to part with their crops and reduced export opportunities, the market is struggling to find a positive direction. The slow pace of coriander lifting from the markets further dampens the outlook, leaving stakeholders in the trade facing an uncertain future.

To navigate these challenges, it is crucial for market participants to develop strategies to stimulate demand, stabilize prices, and improve export volumes. Without effective intervention, the coriander industry may continue to face significant hurdles, impacting everyone involved from farmers to exporters.

Source:CMBroker