Cold wave ups coriander prices

Lower acerage, potential damage to crop also pulled prices higher

Coriander price hit the upper circuit in early Tuesday trade but later cooled down towards on profit booking by traders. Prices have been consistently going up due to reports of crop damage in major producing regions.

The spice for near month delivery was trading at Rs 6,100 a quintal, up 3.5% from the previous day close. Similarly, the commodity for delivery in April, May and June shot up by Rs 6,926 a quintal, Rs 6,984 a quintal and Rs 7,020 a quintal respectively. The commodity has jumped by over 16% in the last one month from the level of Rs 5,247 a quintal on December 8, 2012.

 

Kota based spot trader Govind Khandelwal, proprietor of Shree Ganpati Enterprises, attributed the sudden spurt in prices to the ongoing cold wave in the country. Despite around 50% less sowing, the crop is expected to get damaged further due to cold waves. Coriander output, as a result, is estimated to decline further from the previous forecast between 50-55 lakh bags of 100 kgs each.

Experts said that shivering cold does not allow pods to bloom fully which can develop into seeds. Hence, the existing crop has extensive potential to damage because of cold. Temperature in several parts of the country has set the record low with 1.9 degree centigrade reported in New Delhi a couple of days ago.

Last year, total output was estimated at 110 lakh bags which may reduce this year to 45-50 lakh bags due to lower acreage and crop damage due to cold waves, said Khandelwal.

The new season crop hits mandis in March-April. Hence, the supply is gradually squeezing due to ongoing seasonal demand.