Commodities

NCDEX coriander sinks to 15 months low on higher supplies: Angel Broking



Posted On : 2017-05-11 22:03:26( TIMEZONE : IST )

NCDEX coriander sinks to 15 months low on higher supplies: Angel Broking

Views of Mr. Ritesh Kumar Sahu (Fundamental Analyst - Agri Commodities, Angel Commodities Broking):

"Coriander futures prices sink to 15 months low today after hitting lower circuit on growing concerns of rising supplies from the imports and good production expectations from the new season crop in 2016/17. Market participants are worrying about constant increase in imports of coriander supported by strong Indian rupees and at the same time decreasing export quantities from the country. The production of coriander in the country was adequate despite report of lower acreage during 2016/17 rabi season.

The most active May Coriander Futures on National Commodities and Derivative Exchange (NCDEX) plunge about 24 per cent or Rs. 1,936 in last one month to Rs. 6,104 per quintal. Moreover, in the current season, coriander on NCDEX witnessed heavy selling pressure during the month of April , dragging prices by 12.8% due to rise in arrivals of the new crop. The arrivals of coriander seed in the country during the first 4 month of current calendar has increase by 30% on year to 3.31 lakh tonnes compared to 2.55 lt in 2016.

The arrival of coriander seed peaked during the month of February, March and April. The top three coriander growing states are Rajasthan, Gujarat and Madhya Pradesh. As per the respective state agriculture department, in 2016/17, coriander acreage in Gujarat has been higher but acreage sharply drops in other two producing states - Rajasthan and Madhya Pradesh.

The yield of coriander is expected to be higher during 2016/17 harvesting season as most parts of North-West India and Central India have received normal and above normal rains during the monsoon months in the year 2016. For 2016/17, Department of Agriculture, Cooperation and Farmers Welfare (Horticulture Division) in its 1st advance estimate, pegged the total production of coriander seed at 5.85 lakh tonnes (lt) at the same levels as compared to last year production.

The imports of coriander seed is on the rise in last 3-4 years. In 2013/14, India imported only 5,290 tonnes of coriander seed but the volume of import increase to more than 41,250 tonnes in 2016/17 in first 10 months. Last year, country imported about 25,900 tonnes of coriander mainly from Russia and Italy. On the export front, India exports about 25,339 tonnes of coriander seeds in first 10 month of 2016/17 compared to 31,261 tonnes in the previous year for same period. The export volume of coriander seed was 46,800 tonnes in 2013/14, thus it is expected that there will be a drop of 40% in export volume in 3 years.

Moreover, the stocks of coriander in NCDEX warehouses across Gujarat and Rajasthan are high in the current season compared to last year. As on May 02, 2017, NCDEX warehouses is having stock position of 19,105 tonnes of coriander with another 2,114 tonnes are in process for storage, which means about 21,219 tonnes of coriander seeds are stored against mere 239 tonnes last year. In last one month, about 12,400 tonnes of coriander seeds added in the NCDEX warehouse."

Source : Equity Bulls

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