• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Suresh P. Iyengar

Mumbai, Aug. 24 The bearish undertone in coriander (dhaniya) futures in MCX and NCDEX may reverse in the short-term (1-2 months) as arrivals in the Rajasthan and Madhya Pradesh spot markets slows down.

The low inventory of 10-15 lakh bags against 15-20 lakh bags recorded last year will also lead to price appreciation.

Presently spot prices are quoting at Rs 9,000-10,000 a quintal in Rajasthan and Madhya Pradesh spot markets. Low crop output in Rabi 2008 and strong export demand led to a sharp rise in prices in the last 6-8 months.

From Rs 3,500 a quintal in January, prices have touched an all-time high of Rs 10,000 a quintal in July.

Unusual cold weather in February 2008 in Eastern Rajasthan and parts of Madhya Pradesh led to a huge crop loss. Coriander output has declined by 45 per cent to 45-50 lakh bags (1.8-2 lakh tonnes) against 80-85 lakh bags recorded last year, according to trade sources.

In the first quarter of fiscal ‘09, exports touched 10,000 tonnes against 6,525 tonnes logged in the same period last year.

Coriander exports jumped 27 per cent to 26,000 tonnes valued at Rs 110 crore in 2007-08.

“Export demand picked up due to crop damage in major producing countries such as Bulgaria, Romania, Iran, Morocco, Canada and Australia,” said a trader. The total global trade is pegged at 85,000 to one lakh tonnes.

Apart from ITC, other major exporters include Mumbai-based JABS International, Mehta Exports, Everest Global, M.M International, New Delhi-based Kohinoor Foods, Chennai-based AVT McCormick, Kochi-based Eastern Condiments and Vallabhdas Kanji Ltd.

Being a rabi crop, coriander sowing starts in October. Arrivals begin in February and peaks from March to May with monthly arrivals exceeding 1.50 lakh quintals at major mandi. Monthly arrival falls below 6,000 quintals from August.

The weather and progress of sowing in October may also impact prices.

The area under coriander cultivation is expected to go up this year as farmers have realised better prices, he said.

Rajasthan is the largest producer of coriander with 65 per cent share followed by Madhya Pradesh (25 per cent), Gujarat (7 per cent) and Maharashtra, West Bengal, Andhra Pradesh and Bihar accounts for the rest.

Kota and Ramganj markets in Rajasthan are the biggest with an average daily arrival of more than 15,000 quintals in the peak season.

India consumes about 75-80 lakh bags (3-3.2 lakh tonnes) annually and the Southern States are major consumers with more than 50 per cent of the total domestic consumption.

More Stories on : Commodity Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line