Weekly Review-Coriander

04-Jan-2025 07:39 PM

Coriander production to decline due to weak sowing

Production Decline Due to Weak Sowing

Coriander production in India is facing a decline for the second consecutive year. This year, the sowing area has decreased as farmers opted for other crops like wheat, gram, and garlic, which are fetching higher prices. Despite the Gujarat Agriculture Department reporting stable sowing figures, trade sources estimate a 20-25% drop in sowing in Madhya Pradesh and Rajasthan. In 2023, coriander was sown on 4.95 lakh hectares, but this area has decreased to 3.64 lakh hectares in 2024. Projections for 2025 suggest the sowing area will be further reduced to 3-3.25 lakh hectares, leading to lower production.

Forecasted Production Decline
For 2025, coriander production is expected to be lower than in previous years. Current estimates suggest a production of 80-85 lakh bags, compared to 1.15 crore bags in 2024 and 1.60 crore bags in 2023. While sowing has been completed and the weather has remained favorable so far, the lower sowing area will inevitably result in reduced production.

Outstanding Stock
Due to lower production last season, coriander stocks are expected to be less this year. Reports indicate that stocks at production centers, which were around 40-45 lakh bags in 2024, are now expected to be around 35-40 lakh bags in 2025. In 2023, stocks were 15-20 lakh bags, and in 2022, they were 28-30 lakh bags. In 2021, stocks were as high as 40-42 lakh bags. This reduction in stock will impact prices.

Price Trends
Coriander prices are likely to remain high in 2025 due to both lower production and reduced stock levels. The Ramzan buying market has already seen the start of sales, and the late sowing this year will delay the arrival of the new crop. This delay will contribute to sustained strong prices. While prices may drop briefly after the new crop arrives, a significant slowdown in price reduction is not anticipated. Current market prices are around Rs 72-75 for Eagle quality and Rs 68-72 for Badami, with a potential rise of 3-5 rupees per kg before the new crop arrives.

Imports and Exports
Despite adequate domestic production, coriander imports continue due to the low quality of foreign goods. Imports are typically used for mixing with local produce. In 2022-23, coriander imports hit a record 31,383 tonnes, up from 8,777 tonnes in 2020-21. Imports in 2023-24 were slightly lower at 28,828 tonnes.

On the export front, coriander exports have sharply declined in 2024-25. Exports in the first half of the current financial year (April-September 2024) fell by 59%, and export income dropped by 48%. During this period, exports totaled 29,660.74 tonnes, generating Rs 309.40 crore, compared to 71,931.43 tonnes and Rs 592.27 crore in the same period last year. The total export for 2023-24 was a record 1,08,624 tonnes.

Conclusion
Overall, the coriander market faces a challenging year in 2025, with lower production, reduced stock levels, and strong prices. The decline in sowing area, compounded by poor export performance, suggests that prices will remain elevated, with little room for significant decreases.