India: Coriander prices strengthen as futures gain despite higher arrivals

• Kota spot prices rise 2.8% w-o-w, Gondal up 0.4%
• Oct, Dec futures gain 3.6% and 3.5%, respectively

India’s coriander market strengthened during the week ended 25 September, with spot and futures prices rising despite higher arrivals. Kota prices increased to INR 15,147/quintal (qtl) from INR 14,737/qtl on 18 September, while Gondal prices edged up to INR 14,927/qtl from INR 14,872/qtl. October and December futures also gained more than 3% w-o-w.

Spot prices firm despite higher arrivals

Kota coriander prices rose 2.8% w-o-w, while Gondal prices increased 0.4%. Arrivals increased 10.7% to 1,297 tonnes (t) from 1,172 t, indicating higher physical availability. However, the rise in spot prices alongside higher arrivals suggests demand has continued to absorb available supply.

Stocks declined during the week, with Kota inventories falling 0.4% to 9,875 t from 9,914 t. Gondal stocks dropped 9.9% to 547 t from 607 t. The decline in stocks, particularly at Gondal, provides additional support to the firm spot-market sentiment.

Futures gain as positions shift

October coriander futures rose 3.6% w-o-w to INR 14,824/qtl from INR 14,310, while December futures increased 3.5% to INR 15,328/qtl from INR 14,808/qtl.

October open interest declined 3.9% to 22,250 t as prices increased, indicating short covering. December open interest rose 53.9% to 7,620 t alongside higher prices, indicating fresh long buildup and increased participation in the later contract.

Outlook

Coriander prices may remain supported in the near term if demand continues to absorb arrivals. However, sustained growth in arrivals without corresponding demand could limit further gains.