Turmeric prices are now expected to improve after falling 20 percent from the peak level
10-Aug-2024 01:36 PM
Mumbai. In May 2024, the price of turmeric jumped to the peak level, compared to which the price has fallen by about 20 percent so far.
But in the festive season, the price is also expected to increase with its demand and consumption because traders-stockists have less stock left with it.
A famous trader from Erode says that at present there is a stock of about 50 lakh bags (each bag of 55 kg) of turmeric left across the country, while its new crop is still six months away.
As a result, the equation of demand and supply will remain complex and prices may get an opportunity to rise once again.
According to trade analysts, by the end of 2024, the stock of turmeric will come down significantly, due to which the ratio of stock relative to use is likely to be affected.
At the end of the year 2023, this ratio was 10.50 percent, which is expected to fall to 5.80 percent by the end of 2024.
According to a leading analyst, the producers are keeping the stock of turmeric suppressed in anticipation of further price hike, due to which its arrival in the market is decreasing.
The weak prices in June-July also did not encourage the producers to sell their goods. Now the prices are expected to improve as the demand for turmeric increases in the festive season.
At present, the price of turmeric for October delivery in the futures exchange is running at Rs 16,446 per quintal, while its spot price in Nizamabad Mandi is being reported to be Rs 10,160 per quintal.
Although there was an increase in the sowing area of turmeric last year, its production weakened due to unfavorable weather conditions and hence the price remained high.
During May 2024, the futures price of turmeric in the commodity exchange jumped sharply and at one time reached an all-time high of Rs 20,430 per quintal and this year its futures price has increased by about 15 percent. The arrival of turmeric is likely to decrease in the coming time.
Turmeric prices have remained stable due to weak demand in June-August, but the sentiment now remains bullish.