Coriander will increase by 5 to 7 per kg by July considering the heavy purchase of China and strong fundamentals
China's Massive Purchase of Indian Coriander
China recently made a significant purchase of coriander from India, buying an astounding 850 to 900 containers (equivalent to 17 to 18 thousand tonnes) within the last two weeks. However, the pace of China's ongoing purchases has slowed, indicating a potential decline in demand. It is noteworthy that China tends to buy large stocks of agricultural commodities at once, driven by its immense population of 1.5 billion and local requirements. Furthermore, China has been exporting coriander, much like cumin, to Pakistan.
Syrian and Russian Crops Impacting the Market
In June, the arrival of new coriander crops from Syria and Russia is expected to influence market dynamics. Syria's coriander crop has increased this year, estimated at 25 thousand tonnes. However, there is a recurring challenge of heavy wind damage to the crop in Syria, occurring annually around May 15-20. Nevertheless, if no damage occurs, a crop of 25 thousand tonnes will enter the market in June, with anticipated prices ranging from $750 to $800 per tonne.
As for Russia, the old crop has concluded, resulting in low-quality coriander available in the market at a price range of $725 to $750 per tonne. The new Russian crop, set to debut in June, is eagerly awaited to meet China's demand for high-quality coriander.
Bulgaria's Coriander Crop and Ukrainian Uncertainty
Bulgaria's coriander crop of 12-14 thousand tonnes has recently been completed, with only two months of remaining crop. However, due to the high price range of $900 to $1000 per tonne, there is currently no demand for Bulgarian coriander in the international market.
Regarding Ukraine, coriander harvest has taken place, but shipping from the region where it is grown poses challenges due to Russian occupations. The availability of Ukrainian coriander in the international market remains uncertain.
Indian Coriander Scenario
In India, coriander prices are expected to remain stable despite heavy damage in the crop of Madhya Pradesh and Rajasthan, resulting in poor quality. Stockists have procured a significant quantity of good quality coriander and stored it in cold storage. This strategic move is likely to yield favorable returns for the stockists, who purchased coriander at a lower cost.
Considering China's purchases and underlying market fundamentals, coriander prices are expected to rise by 5 to 7 INR per kg by July.
Stay tuned for more updates on the global coriander market from SumanExports.