Strong demand spurred by festive buying amid anticipation of fall in sowing area may drive coriander prices up in the next one month, traders and industry experts said.
Anticipating a fall in coriander acreage stockists has increased purchases, thereby lending further support to prices.
Festival season buying ahead of Diwali coupled by stocking by traders is supporting coriander.
Since October 15, coriander futures have gone up by nearly 14% on National Commodity and Derivatives Exchange.
?Coriander prices can go up further by Rs 3,000 per 100 kg in the next few days on Diwali demand and less sowing, Vishal Garg,? a Kota-based trader said.
Prices of coriander badami variety were at Rs 2,600 per 100 kg, while eagle variety was at Rs 2,700 per 100 kg in Ramganj mandi. Demand for spices generally moves up during Diwali, which is celebrated on November 5 this year. The uptrend in prices is likely to continue even after the end of festive season as area under cultivation is seen declining leading to lower output. Coriander farmers in Rajasthan, the biggest producing state, are likely to shift towards mustard in search for higher returns.
Coriander prices have plunged sharply in the last one year. This has lead to shift in farmer?s interest to other crops.
?Coriander prices have come down to Rs 34 a kg from nearly Rs 80 a kg during the same time last year,? Chowda Reddy, analyst at JRG Wealth management said.
Sowing of coriander, a rabi crop, starts in the middle of October and extends until November end. ?In Rajasthan, sowing is yet to start, but in Gujarat sowing has started and is 40% less than last year,? Garg said.
In Rajasthan and Madhya Pradesh coriander sowing will commence only after Diwali. Farmers in Rajasthan are also inclined towards mustard sowing, as the crop requires less irrigation compared with coriander.
?A single spell of rainfall in the next few days can reduce the shift in acreage from coriander,? Sunil Jain, a trader from Ramganj market said. But in Gujarat, higher prices of jeera have lead to a shift in area from coriander to jeera, Jignesh Nayi, a farm analyst from Unjha said.
Fall in acreage in major coriander growing regions may lead to a fall in output this year.
