Fennel seed is experiencing good demand in International as well as Indian markets, if this good demand run continues expect a rise in the price of 15-20rs per kg (182-220$ Per Ton).
Key Highlights
Out of 20-21 lakh sacks of fennel, 12 lakh sacks have arrived in the market, and in the coming month, 4 to 4.50 lakh sacks are expected to arrive.
There is no possibility of a downtrend in fennel price of more than 5 to 8 rs/kg due to the increase in the export of fennel.
In this post, we will deep dive into the reasons why fennel prices are not coming down in the days to come.
Production and Crop Report
The country's production of fennel was estimated at 20-21 lakh bags (56 kg per bag). Last year the production of fennel in the country was 14.65 (revised) lakh bags. The production of fennel in Gujarat was estimated to be 10.88 (last year 7.52 (revised) lakh bags). The production of fennel in Madhya Pradesh and Uttar Pradesh and other states is estimated to be 2.58 (1.70 last year revised) lakh bags.
Due to the decrease in fennel crop last year, there was absolutely no carry
forward stock at the beginning of the current year, due to which the arrival of fennel in Madhya Pradesh's (Barwani) center is first, the demand of 75 to 80 thousand sacks of fennel was fulfilled by this crop. Every year in February-March the demand is fulfilled by carry forward fennel, but in the current year, the carry forward stock was absolutely zero. With the fulfillment of the demand from Madhya Pradesh's Fennel, the consumption of 75 to 80 thousand sacks will increase in the current season.
Domestic Consumption
The annual domestic consumption of fennel is 12 to 12.50 lakh bags, which is estimated to remain in the current year, in which there will be an increase of 75 to 80 thousand bags, as well as 5 lakh bags of fennel are expected to be exported in the current year.
The domestic demand for fennel has been very good for the last 2 years as the majority of hotels, restaurants, and tourist places are in full swing after closure for 2 years due to Corona.
Rise in Export Demand
Indian fennel is exported to many countries including Europe, and America, but China, Bangladesh, and Malaysia are the main consumers of Indian fennel.
Last year 21 to 22 thousand tonnes of fennel was exported whereas, in the current year, 27.50 to 28 thousand tonnes of fennel is expected to be exported because the demand from China, Malaysia, and Bangladesh is very high in the current year.
India's biggest competitor in the production of fennel is Egypt.
The effect of El Nino will be visible in the monsoon and Egypt's crop will be weaker than expected. Egypt's crop will come on the market in June-July. There are no reports about Egypt's crops yet.
The export price of fennel at Mundra Port is Rs. 148/kg (1810$/ton) it was Rs.118/kg (1440$/ton) in June last year of Singapore quality at present. Due to the tight balance sheet of fennel and the perception of increasing exports.
The export price of fennel at Mundra Port is Rs. 148/kg (1810$/ton) it was Rs.118/kg (1440$/ton) in June last year of Singapore quality at present
As we all have focused our attention on Cumin Seed and its volatile prices, it will be worthwhile to turn our attention toward Fennel Seed and observe its movement in the market.
Stay tuned for more information and updates about the fennel seed crop. Do reach out to us if you have any queries about Fennel Seed or any other Spices. Suman Exports is a premier name when it comes to the export of High-quality spices and timely services.