Decline Observed in Turmeric Futures

07-Apr-2025 02:31 PM

Decline Observed in Turmeric Futures
★ After a recent sharp rise in turmeric prices, profit booking has led to a 6% drop, bringing the price down to Rs. 14,090. Demand remains strong, but limited supply continues to drive buying interest at trading centers. Particularly in regions like Nanded, supply has fallen short of expectations due to smaller rhizomes and crop damage.
★ This season, turmeric sowing area has increased by 10% to 3.30 lakh hectares. However, unseasonal rainfall has affected the potential production gains. It is estimated that yield may drop by 10–15%. Despite the increase in sowing area, production is likely to remain around last year's level of 10.75 lakh tons or fluctuate by about 3–5%.
★ A surge in exports has boosted market sentiment. During April–December 2024, turmeric exports rose by 13% year-on-year to 1.37 lakh tons—the highest level in the past four years. In December alone, turmeric exports increased by 46.94%, indicating strong international demand. During the same period, imports also rose by over 84%, though December saw a decline of more than 44%, suggesting that improved domestic supply has reduced external dependence.
★ In the Nizamabad spot market, turmeric prices rose by 0.65% to Rs. 14,614.25, indicating local support.
★ Technically, new selling pressure is emerging in the market, as open interest increased by 5.62% to 10,815 contracts, reflecting heightened participation. The support level for prices is at Rs. 14,812, with a risk of falling to Rs. 14,566 if breached. On the upside, resistance is at Rs. 15,372, and if crossed, prices may soon reach Rs. 15,686.