MCX to launch coriander seeds futures

MCX to launch coriander seeds futures
Mumbai, July 25 Close on the heels of launching futures trading in Aviation Turbine Fuel (ATF), MCX plans to launch futures in coriander seeds (Dhania), which commands a market of Rs 1,100 crore.
“The exchange has received the necessary approval from FMC and it should be available for trading from Monday,” sources said.
Rajasthan is the largest producer of coriander with 65 per cent share followed by Madhya Pradesh (25 per cent), Gujarat (seven per cent) and Maharashtra, West Bengal, Andhra Pradesh and Bihar accounts for the rest. The commodity is more prone to price volatility as the supply is inconsistent. Grown as Rabi crop, arrivals hit the market between February and June. With a shelf life of less than six months the supply side risk is high and it is more suited for futures trading, said a trader.
The most prevalent quality Badami Dhania commands the highest market share with 65-70 per cent and can be preserved for 6 - 8 months. It has a shelf life of four years in cold storages and consumed extensively in masala.
India is the largest producer of coriander seeds with other producing countries such as Bulgaria, Romania, former USSR, Iran, Morocco, Canada and Australia. The total global trade is pegged at 85,000-1 lakh tonnes.Exports
Apart from ITC, other major exporters include Mumbai-based JABS International, Mehta Exports, Everest Global, M.M International, New Delhi-based Kohinoor Foods, Chennai-based AVT McCormick, Kochi-based Eastern Condiments and Vallabhdas. Major exporters are India, Morocco, Turkey, Iran, China and Somalia.
Seventy per cent of total coriander produced are used for value added spices and Oleoresin. The major importing centres include Kota, Ramganjmandi, Baran, Jaipur, Kumraj Guna, Madurai and Vidhutnagar.
The spot price of coriander seeds has nearly doubled in last one year to Rs 6,200 a quintal from Rs 3,450 a quintal due to a 36 per cent fall in production at 45 lakh bags (40 kg per bag) against 70 bags last year. (Hindu Business Line)