Dhaniya makes a smart recovery

Dhaniya futures contract on the NCDEX was volatile last week. Though the arrivals kept the prices under pressure initially, the contract managed to make a smart recovery in the latter part of the week. Revival in demand took the contract to a high of ₹6,999 per quintal.

Pick-up in export demand for premium quality produce, coupled with subdued arrivals from the major markets on the back of farmers and stockists stocking the produce for better prices, also supported the price rise last week. The April month contract ended the week with a marginal gain of 1.84 per cent at ₹6,851 per quintal, while the May month contract climbed 2.03 per cent for the week.

Coriander production is expected to be slightly lower in the current season as farmers in Rajasthan and Gujarat have shifted to chana, wheat and garlic due to better realisation. Quality standards of fresh crop have improved due to rising temperatures at the major producing centre.

For the coming week, dhaniya futures contract may continue to trade on a positive note on the back of revival in both domestic as well as export demand. Besides, lower production estimates arelikely to render support to the market.

The writer is Head-Commodity Research, Karvy Comtrade

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