Coriander Prices Explained
Coriander prices slowed down in the second quarter of trading in 2023 as supply offset the global demand.
The Index Box record reported that the average import price for coriander seeds, crushed or ground ( in Australia ) amounted to $2,183 per ton, declining by -3.6% against the previous month.
Additionally, the highest price was in Malaysia ($2,197 per ton) while the price for India stood at $2,085 per ton.
However, market analysts noticed a regain in its value track ( late 3rd quarter trading period ) as erratic rainfall heavily damages India’s crop ( the largest coriander producer ), causing coriander domestic prices to spike at $0.60 per bunch in the country’s retail market.
Why are coriander prices fluctuating?
1. Variety of Coriander
Different coriander kinds have different flavors, aromas, colors, and sizes. Thus, these attributes contribute to its fluctuating prices.
Additionally, consumer preferences and the particular variety have an impact on coriander prices.
For example, Moroccan coriander has a strong flavor and scent which makes it a popular option in some European and Middle Eastern markets. Overall, these distinctive qualities contribute to fluctuations in prices.
2. Farmers Shifted to Cumin Cultivation
The shift in global farming practices to cumin cultivation influenced coriander prices through supply and demand dynamics in the spice market.
For instance, the shortage of cumin from other countries increased the demand and cost for Indian cumin, which led some Indian farmers to change from coriander to cumin production.
As a result, there is less Indian coriander availability which raises its prices considering costs were already rising due to competition from Russian coriander.
3. Weather Conditions
Coriander is a cool-season herb that grows best in full sun and well-drained soil, therefore, coriander production is successful when the weather is dry and cold, free from frost, especially during the flowering and fruit setting stage.
Favorable weather conditions lead to an increase in coriander supply, resulting in decreased prices. Conversely, unfavorable weather reduces coriander supply, leading to an increase in its prices.
4. Government Policies
When a tariff is imposed on imported coriander, it tends to raise the domestic price as importers pass on the additional costs to consumers, potentially benefiting domestic producers but negatively affecting consumers and foreign exporters.
Conversely, if the government provides subsidies on exported coriander, it lowers the domestic price, benefitting domestic consumers and foreign importers but potentially harming domestic producers and straining the government budget.
Which variables impact the price of coriander?
- Variety of Coriander
- Farmers shifted from Cumin Cultivation
- Government Policies
- Weather Conditions.
- Global Market Trends
- Storage and Transportation Costs
Where does coriander come from?
Coriander, also referred to as cilantro, is an annual herb well known for its tart, lemony taste. Additionally, both its leaves and seeds are used as a spice in cooking.
Furthermore, it stands as one of the oldest recorded herbs and spices. To achieve the best flavor and scent, coriander is harvested by picking the plant at the right time. Here’s a general guide on how to harvest coriander:
Harvesting Cilantro Leaves – Wait until the plant has developed enough amounts of leaves. Next, start by cutting the outer leaves, allowing the inner leaves to keep growing.
Additionally, harvesting in the morning is frequently advised as the leaves are typically fresher during this time.
Harvesting Coriander Seeds – Give the coriander plant time to reach flowering. Subsequently, the seeds will grow after the flowering stage. Then, collect the seeds after they become fully matured but before they start dropping from the plant.
What are the uses of coriander?
Coriander has many therapeutic uses and is widely used in many different cuisines as a herb and spice.
Also, it’s incredibly low in saturated fat and cholesterol. Moreover, it is a good source of important minerals like calcium, iron, magnesium, potassium, copper, and manganese. Coriander has several industrial applications across various industries. Here are some of its uses:
Tobacco Industry – It’s used to enhance the flavor and aroma of tobacco products as well as to eliminate any unwanted odors in them.
Pharmaceutical Applications – Due to its antimicrobial qualities, coriander seed oil is used in the treatment of rheumatism, neuralgia, and colic. Additionally, coriander has anti-inflammatory, antidiabetic, neuroprotective, anti-cancer, and antioxidant properties.
Food Industry – It finds extensive use as a spice, herb, and vegetable in diverse global cuisines. Furthermore, its leaves and seeds have distinct sensory qualities that improve culinary products’ flavor, color, and texture.
Cosmetic Industry – Coriander serves as a fragrance and flavoring component in cosmetic items like perfumes, soaps, creams, and lotions. Additionally, it offers skincare advantages like moisturizing, soothing, and healing properties.
What is the future price of coriander?
The functional properties of coriander make it attractive for use in food, medicine, and cosmetics, prompting global market companies to develop a variety of products to meet consumer needs.
Additionally, it is anticipated that the market for coriander produce will expand due to growing demand from North America and Europe.
Overall, the Coriander price will be $3.20 to $4.25 per kilogram in 2027 and its market size is estimated to reach $4.1 billion with a CAGR of 10.1%.