Call to Restrict Futures Trading of High-Quality Turmeric
19-Aug-2025 06:07 PM
Brisbane. 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 connivance with certain officials of NCCF / NCDEX, have stocked low quality turmeric from regions like Marathwada, Duggirala and Assam in warehouses approved by the exchange and are trying to use it for trading by wrongly labelling it as Nizamabad origin turmeric.
The use of this low or low quality turmeric stock in futures trading is putting heavy pressure on the prices of this important spice and its market is starting to fall apart.
The letter draws the attention of the officials to some important issues. It states 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 the Indian product abroad has also been seriously endangered. Honest traders have started losing faith in the exchange. This wrongful activity should be curbed immediately.