Not just crude, coriander seed imports too spice up Russia trade

While India’s total import volumes of coriander seeds in April-November jumped nearly 250% year-on-year to 26,143 tonnes, imports from Russia rose by a disproportionately higher rate. So much so, that Russia accounted for 88% of India’s coriander seed imports for the period under consideration.

In the corresponding periods of the previous two financial years, coriander seed imports had registered moderate year-on-year growth, and imports from Russia had actually fallen.

In value terms, too, there was a disproportionate surge in coriander seed imports vis-a-vis the rise in overall imports of the commodity. Overall imports of the spice more than doubled year-on-year in April-November to $22.24 million from $10.20 million. But Moscow’s share jumped to nearly 84% from around 13% in the year-ago period.

The analysis is based on country-wise import data released by the Commerce Ministry for harmonised system code – or HS code – 090921, which stands for ‘Seeds of coriander: neither crushed nor ground’. Country-wise and commodity-wise import data are released with a lag and the government has so far released this data only until November.

India has a unique position in global coriander trade and production. The country counts among the top importers, producers, consumers, as well as exporters of coriander seeds. Other top exporters include Russia, Italy and Bulgaria.

According to some market participants, lower domestic production sent domestic coriander seed prices soaring, greatly expanding the price differential between Indian and Russian coriander seeds, with the latter being available at a discount to prices offered by traders in Italy and Bulgaria. This led to super normal volumes of the spice being imported from Russia. Some even alleged that while local production was indeed lower, excessive speculation by some traders led to fears in the market, resulting in flooding of the domestic market with significantly cheaper Russian coriander.

By contrast, coriander seed imports from Italy and Bulgaria in April-November declined sharply – by 83.9% and 40.8%, respectively – year-on-year. In the corresponding eight months of 2021-22, Italy was India’s biggest supplier of the spice, while Bulgaria was a close third behind Russia.

Recent trends in India’s coriander seed exports validate lower domestic output and related fears as major factors leading to the surge in imports.

The country’s exports of the commodity in April-November declined by almost a fifth, or 5,050 tonnes, to almost 21,317 tonnes. In the corresponding period of the previous fiscal year, exports declined nearly 12% year-on-year, while in April-November of 2020-21, they rose 18.7%.

Coriander is a rabi crop with sowing in October-December and harvesting in February through May. Madhya Pradesh, Rajasthan and Gujarat are key coriander producing states. Badami is the most prominent variety of Indian coriander seeds, with Eagle, Scooter, Double Parrot, Single Parrot and Super Green being the other prominent varieties.