Day: May 7, 2018

A sharp 40% fall in output, which typically should have led to higher prices, may not translate into better returns for coriander growers, as rising imports over the last couple of years are likely to drag down prices by another 10-12% by July. Coriander prices have declined 20-22% since the beginning of 2018 in the spot and futures market. Coriander production in 2017-18 (Oct-Sep) is estimated at 6 mln bags of 40 kg each, while carryover stock from last season is pegged at 4-5 mln bags, largely comprising of imports. Higher carryover stock has led to a rise in total inventory to such a level that stockists do not have enough space at warehouses to store new stocks. The likely sharp fall in output this year has largely been attributed to subdued prices through most of last season.

Futures contracts of coriander on NCDEX rose nearly 2% as investors covered their short positions after the May contract hit a seven-month low of 4,640 rupees per 100 kg earlier. The May contract was up 1.64%. A fall of 2,150 tn in open interest in the contract at 16,200 tn indicated short covering.Prices, however, are likely to fall in the short term as daily arrivals may hit 25,000 bags by next week.