INTRODUCTION

• IT IS AN ANNUAL HERB AND SPICE CROP BELONGING TO THE FAMILY OF

APIACEAE (CARROT FAMILY).

• IT IS SAID TO BE ORIGINATED FROM EASTERN EUROPE AND ASIA.

• COMMERCIAL PARTS ARE LEAVES AND SEEDS.

• REQUIRES GOOD EXPOSURE TO SUNLIGHT, LOAMY SOIL AND WELL DISTRIBUTED

MOISTURE.

• SOWING PERIOD IS OCTOBER TO DECEMBER WITH A DURATION OF 90 DAYS AND

HARVESTING PERIOD IS JANUARY TO APRIL.

• IT IS MAINLY FOUND IN SOUTHERN EUROPE, NORTH AFRICA AND SOUTH WEST

ASIA

VARIETIES

• BADAMI

• EAGLE

• SCOTER

• DOUBLE PARROT

• SINGLE PARROT

• SUPER GREEN

USES

• MAJOR USES ARE FLAVORING AGENT, SEASONAL AGENT AND MEDICINAL

PURPOSES.

• LEAVES: MAJOR INGREDIENT IN MANY INDIAN, CHINESE AND THAI CUISINES

SUCH AS SALADS, SALSA, DAL ETC.

• SEEDS: USED FRO MAKING CORIANDER POWDER AN INGREDIENT IN INDIAN

CUISINES, BREWING BEERS AND FOR MEDICINAL PURPOSES.

• ROOTS: USED MAJORLY IN THAI CUISINES SUCH AS SOUP AND CURRY PASTES.

VALUE CHAIN

QUICK FACTS

• IN INDIA IT IS CULTIVATED AS A RABI CROP.

• MAJOR BUYERS ARE SPICE PROCESSING AGENCIES.

• MAJOR TRADING CENTERS ARE RAJASTHAN AND MADHYA PRADESH.

• GLOBAL PRODUCTION RANGED FROM 3 LAKH TONNES TO 6 LAKH TONNES.

• MAJOR PRODUCERS OF CORIANDER ARE INDIA, MOROCCO, CANADA, RUSSIA,

TURKEY, EGYPT ETC.

• MIDDLE EAST AND SOUTH EAST ASIA, USA, GERMANY ARE THE MAJOR

IMPORTERS.

GENERAL CHARACTERISTICS

• CORIANDER (CORIANDRUM SATIVUM), DHANIA IS AN ANNUAL SPICE CROP AND A MEMBER OF THE UMBELLIFERAE, OR CARROT FAMILY. THE CORIANDER PLANT YIELDS BOTH THE FRESH HERB AND SPICE SEED, WHICH ARE USED PRIMARILY FOR CULINARY PURPOSES.

• THE FRESH GREEN HERB IS CALLED CILANTRO, OR CHINESE PARSLEY. IT IS USED IN SOUTHEAST AND SOUTHERN ASIAN, CHINESE AND MEXICAN CUISINE, AND FOR FLAVOURING SALADS AND SOUPS.

• THE FRUITS (SEEDS) ARE WIDELY USED AS CONDIMENTS WITH OR WITHOUT ROASTING IN THE PREPARATION OF CURRY POWDERS, SAUSAGES AND SEASONINGS. IT IS AN IMPORTANT INGREDIENT IN THE MANUFACTURE OF FOOD FLAVOURINGS, IN BAKERY PRODUCTS, MEAT PRODUCTS, SODA & SYRUPS, PUDDINGS, CANDY PRESERVES AND LIQUORS.

• THE SPICE IS ALSO EMPLOYED FOR THE PREPARATION OF EITHER THE STEAM-DISTILLED ESSENTIAL OIL OR THE SOLVENT-EXTRACTED OLEORESIN. BOTH PRODUCTS ARE USED IN THE FLAVOURING AND AROMA INDUSTRIES.

GLOBAL SCENARIO

• THE GLOBAL PRODUCTION OF CORIANDER SEED IS ESTIMATED TO BE AROUND 6 LAKH TONNES. HOWEVER, OFFICIAL ESTIMATES ARE RARELY AVAILABLE FOR THIS CROP IN MOST PRODUCING COUNTRIES. ADDITIONALLY, CORIANDER IS WIDELY GROWN IN HOME GARDENS ON A SMALL SCALE, WHICH IS NEVER INCLUDED IN OFFICIAL STATISTICS.

GLOBAL CORIANDER PRODUCERS

MAJOR GLOBAL

PRODUCERS

• INDIA

• MOROCCO

• CANADA

• ROMANIA

• RUSSIA

• UKRAINE.

OTHER PRODUCERS

• Iran

• Turkey

• Israel

• Egypt

• China

• US

• Argentina

• Mexico.

GLOBAL EXPORT AND IMPORT SCENARIO

• THE GLOBAL TRADE IN CORIANDER IS ESTIMATED TO BE AROUND

0.85 - 1 LAKH TONNES A YEAR.

• THE MAJOR EXPORTERS ARE INDIA, TURKEY, EGYPT, ROMANIA,

MOROCCO, IRAN AND CHINA.

• THE MAJOR IMPORTERS ARE MIDDLE EAST, SOUTH-EAST ASIA, USA,

UK, GERMANY ETC.

INDIAN SCENARIO• INDIA IS THE BIGGEST PRODUCER, CONSUMER AND EXPORTER OF CORIANDER IN THE WORLD WITH

AN ANNUAL PRODUCTION AVERAGING AROUND 3 LAKH TONNES. THE PRODUCTION FLUCTUATES

WIDELY BETWEEN YEARS AND HAS VARIED FROM BELOW 2 LAKH TONNES TO ABOVE 4 LAKH

TONNES IN THIS DECADE.

• RAJASTHAN (54%) AND MADHYA PRADESH (17%) ARE THE TWO LARGEST PRODUCING STATES IN THE

COUNTRY CONTRIBUTING OVER TWO-THIRDS TO THE COUNTRY'S TOTAL PRODUCTION IN 2006-07.

THE OTHER PRODUCERS ARE GUJARAT (6.9%), ASSAM (6.6%), ANDHRA PRADESH (3.5%, KARNATAKA

(3.3%), ORISSA (3.2%) AND TAMIL NADU (2%).

• OFFICIAL ESTIMATES OF AREA AND PRODUCTION ARE RELEASED BY THE SPICES BOARD, INDIA AND

THE LATEST ESTIMATES AVAILABLE PEG INDIA'S PRODUCTION IN 2006-07 AT 2.88 LAKH TONNES AND

AREA UNDER CULTIVATION AT 3.62 LAKH HECTARES. THE PRODUCTION FROM RAJASTHAN AND

MADHYA PRADESH ARE REPORTED AT 1.55 AND 0.50 LAKH TONNES RESPECTIVELY. RAJASTHAN'S

CORIANDER PRODUCTION IS ESTIMATED TO HAVE DIPPED SHARPLY TO AROUND 1.30 LAKH TONNES

IN 2007-08. HOWEVER, OUTPUT IS 2008-09 IS REPORTED TO BE NORMAL.

INDIAN SCENARIO(CONT.)

• CORIANDER FOR SEED CULTIVATION IS GROWN AS A RABI CROP WITH SOWING UNDERTAKEN

DURING OCTOBER - NOVEMBER AND NEW CROP ARRIVALS SEEN IN FEBRUARY - MARCH.

• INDIA ANNUALLY EXPORTS AROUND 25,000 - 30,000 TONNES OF CORIANDER A YEAR. INDIA

EXPORTED 30,200 TONNES OF CORIANDER IN 2008 VALUED AT RS 204 CRORES IN 2008. THE

MAJOR BUYERS WERE MALAYSIA (7050 TONNES), UAE (5450 TONNES), PAKISTAN (3215 TONNES)

AND SAUDI ARABIA (2475 TONNES).

• THE MAJOR DOMESTIC BUYERS OF CORIANDER SEED IN INDIA ARE SPICE PROCESSING

AGENCIES, WHICH CONSUME AROUND 50% OF THE PRODUCTION ARE MOSTLY LOCATED IN THE

SOUTHERN STATES OF INDIA AND DELHI. THE DEMAND FROM THIS SECTOR PEAKS DURING

APRIL TO JUNE, WHICH ALSO COINCIDES WITH THE PEAK ARRIVAL PERIOD.

MAJOR FACTORS INFLUENCING PRICES

* WORLD PRODUCTION * INTERNATIONAL TRADING PRICE * DOMESTIC AND EXPORT DEMAND * CARRY FORWARD STOCKS * SOWING AND HARVESTING * CLIMATIC CONDITIONS

MARKET INFLUENCING FACTORS

• THE SUPPLY FLUCTUATES SHARPLY BETWEEN SEASON AND THIS LEADS TO HIGH PRICE VOLATILITY. THE SUPPLY IS

INFLUENCED BY ACREAGE UNDER THE CROP, WEATHER AND DISEASES.

• WEATHER, ESPECIALLY ABSENCE OF FROST DURING FLOWERING AND PRESENCE OF SUNSHINE DURING SEEDING

STAGE PLAYS A MAJOR ROLE AS IT INFLUENCES THE YIELD AND APPEARANCE OF THE SEED. THE CROP IS HIGHLY

DISEASE-PRONE AND REQUIRES REGULAR CARE AND MONITORING.

• THE PRICES HAVE BEEN DISPLAYING ONLY MODERATE SEASONAL BEHAVIOUR IN RECENT YEARS WITH PRICES

SLIGHTLY DIPPING DURING THE PEAK ARRIVAL MONTHS - MARCH TO JUNE. THE STRONG DEMAND FROM DOMESTIC

SPICE PROCESSORS AND EXPORT MARKET HAS PREVENTED PRICES FROM CRASHING EVEN DURING THE PEAK

ARRIVALS.

• THE SEEDS CAN BE STORED FOR ONLY AROUND SIX-EIGHT MONTHS IN NORMAL TEMPERATURE AND THIS

INFLUENCES AVAILABILITY AND PRICES DURING THE LOW AVAILABILITY MONTHS - OCTOBER TO JANUARY.

• EXPORT DEMAND IS ANOTHER IMPORTANT PRICE INFLUENCING FACTOR AS INDIA'S SURPLUS PRODUCTION IS VERY

LIMITED. THE EXPORTS FROM INDIA HAVE BEEN PICKING UP IN RECENT YEARS ON ACCOUNT OF THE INCREASED

PRESENCE OF INDIANS ABROAD AND RISING PREFERENCE FOR SPICY FOODS IN DEVELOPED NATIONS.

STRUCTURE OF EXPORT OF SPICES OF INDIA BY COUNTRIES, 2007-2008

STRUCTURE OF EXPORT OF SPICES OF INDIA BY KINDS, 2007-2008.

CORIANDER FUTURES

• CORIANDER FUTURES CONTRACT WAS LAUNCHED ON AUGUST 2008. THE SUPPLY FLUCTUATION DUE TO UNDERLYING FUNDAMENTAL FACTORS LEADS TO HIGH PRICE VOLATILITY. INADEQUATE STORAGE PERIOD (6-8 MONTHS) EFFECTS AVAILABILITY AND THUS THE PRICES DURING LOW AVAILABILITY MONTHS, SUCH SUPPLY FLUCTUATIONS PROVIDE OPPORTUNITY TO A SPECULATOR. FOR HEDGERS IT MINIMIZES PRICE RISK. DUE TO GOOD AVAILABILITY IN PHYSICAL MARKETS ARBITRAGERS CAN MAKE USE OF THE FUTURES PLATFORM TO MAKE RISKLESS PROFITS. THUS THE CORIANDER CONTRACT PROVIDES SPACE FOR EVERY INVESTOR CATEGORY.

TECHNICALS

CORIANDER HISTORICAL PRICES

JANUARY 2015 CONTRACT

APRIL 2015 CONTACT

MAY 2015 CONTRACT

FUTURE PROSPECTS

• INDIA IS THE LEADING EXPORTER AND EXPORTS AROUND 25000-30000 MT OF CORIANDER EACH YEAR. THE EXPORT DEMAND HAS BEEN INCREASING CONSTANTLY BOTH IN TERMS OF QUANTITY AND VALUE. THE MAJOR DOMESTIC BUYERS OF CORIANDER SEED IN INDIA ARE SPICE PROCESSING AGENCIES, WHICH CONSUME AROUND 50% OF THE PRODUCTION AND ARE MOSTLY LOCATED IN THE SOUTHERN STATES OF INDIA AND DELHI. AS THE MASALA MAKING BUSINESS IS GROWING EXPONENTIALLY, THE DEMAND FROM THIS SECTOR IS EXPECTED TO INCREASE IN FUTURE.

REFERENCES

• HTTP://WWW.NCDEX.COM/GLOBALSEARCH/SEARCH.ASPX?SEARCHTEXT=DHANIYA&SEARCHTITLE=CORIANDER

• HTTP://WWW.EXPORT.BY/EN/?ACT=S_DOCS&MODE=VIEW&ID=9637&TYPE=BY_COUNT..

• WWW.INDIANSPICES.COM

• WWW.RAJAMB.COM

• WWW.AGMARKET.NIC.IN

• WWW.IMD.ERNET.IN