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Dhaniya loses flavour
The dhaniya futures contract on NCDEX registered a sharp fall during the week ended April 13 following negative market signals. Strong selling pressure prevailed as improving supplies of fresh crop at major markets in Gujarat, Rajasthan and Madhya Pradesh, amid a dull demand scenario, weighed on prices in the futures market.
Further, as export demand for Indian coriander was also lower, prices slipped. The most active May-month contract touched a four-week low at ₹7,120 per quintal before closing the week at ₹7,303, down by 4 per cent over the previous week. In the spot market, prices dropped by ₹250-300 per quintal across the major markets, including Kota, Rajkot, Halvad and Neemuch.
According to the Federation of Indian Spice Stakeholders (FISS), overall dhaniya production in 2016-17 is likely to be marginally lower at 4.05 lakh tonnes, down by 8 per cent y-o-y. Gujarat, Madhya Pradesh and Rajasthan are expected to produce around 1.71, 1.62, 0.72 lakh tonnes respectively.
Outlook The dhaniya futures contract is expected to remain under pressure in the coming week.
However, some recovery in prices is expected from the support of ₹7,000 per quintal as prices have lost over 9 per cent in the last six trading sessions.
The writer is Head-Commodity Research, Karvy Comtrade
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