Call to Curb Low-Quality Turmeric Trading in Futures
20-Aug-2025 11:18 AM
Improvement
Erode. The Turmeric Traders Association has expressed serious concern over the fraud and manipulation in the futures trading of turmeric on the NCDEX platform and has urged the concerned authorities to immediately curb it.
In a letter sent to the SEBI Chairman, Union Commerce Ministry, Agricultural Marketing Department of Telangana, Spices Board, NCDEX and NCCF, the Turmeric Traders Association of Erode has alleged that a group of select traders,
in collusion with some special officials of NCCF / NCDEX, have stored the stock of low quality turmeric from areas like Marathwada,
Duggirala and Assam in the warehouses approved by the exchange and are trying to use it for trading by wrongly labelling it as turmeric of Nizamabad origin.
The use of this low or poor quality turmeric stock in futures trading is putting heavy pressure on the prices of this important spice and its market is starting to disintegrate.
The attention of the officials has been drawn to some important issues in the letter. It said that low quality turmeric stocks are being accepted in warehouses recognized by NCDEX without checking the quality and are being continuously traded with the wrong tag of 'Nizamabad origin', whereas the colour, appearance, taste and curcumin content of this turmeric is not the same as that of Nizamabad turmeric.
According to the letter, this low quality turmeric forms the basis of futures contracts, which has a serious adverse effect on the trading and futures price of good quality goods.
Price discovery is being manipulated. This activity is benefiting a select few traders heavily while other traders are suffering huge losses. Due to this artificial or artificial fall in prices, turmeric producers,
honest traders (who actually trade Nizamabad turmeric) and exporters are not only suffering huge losses but the image and credibility of Indian product abroad has also been seriously threatened. The confidence of honest traders towards the exchange has started to waver. This wrong activity should be curbed immediately.