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In the month of June, Dhaniya prices experienced a significant decline, reaching a low of 5880 levels. This drop was primarily attributed to the abundant arrivals of Dhaniya in the market. However, there was a notable surge of almost 16% witnessed in the prices from the low of 5880. The rally in other spices, such as turmeric and , also influenced Dhaniya prices, with turmeric experiencing a 23.62% gain and jeera experiencing a 23.55% surge. Natural disruptions like the Biparjoy storm in Gujarat and Rajasthan contributed to supply disruptions.
The reason for the increase in dhaniya prices is the reduced arrivals of in the major mandis of Ramganj and Baran, which are located in Rajasthan, the largest producer of coriander in India. The arrivals have declined due to the impact of Biparjoy storm, which hit Gujarat and Rajasthan in June and caused heavy rainfall and crop damage. The storm also disrupted the transportation and logistics of coriander from these states to other parts of the country.
Another reason for the rise in dhaniya prices is the increased export demand from international markets, especially from Europe and Middle East. According to the data from Agricultural and Processed Food Products Export Development Authority (APEDA), India exported 1.17 lakh tonnes of coriander during April-March 2023, which is 11% higher than the previous year. The export demand has been driven by the competitive prices of Indian coriander, which are lower than those of other major exporters like Morocco and Bulgaria. The export demand has also been supported by the quality and variety of Indian coriander, which has different types like eagle, scooter and badami.
Further, the increase in dhaniya prices is the uncertainty over the monsoon rainfall and its impact on the upcoming rabi season, which starts from October and ends in March. The monsoon rainfall is crucial for the irrigation and growth of coriander, as it is a water-intensive crop. However, the monsoon rainfall has been erratic and below normal so far, which may lead to moisture stress and lower yield of coriander in the rabi season. The lower production may create a supply-demand gap and push up the prices further.
In conclusion, dhaniya prices have witnessed a sharp rise in June due to reduced arrivals, increased export demand and uncertain monsoon rainfall. These factors may continue to influence the prices in the coming months, depending on their severity and duration. Therefore, it is important for the stakeholders of coriander industry to monitor the market trends and take appropriate measures to ensure adequate supply and quality of this spice. Technical analysis suggests Dhaniya is finding support at 6400 levels, with a further dip potentially testing the 6050 level. Resistance is likely at 7050 levels, and a breakout above this mark could push prices to test 7280 levels.
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