Turmeric prices expected to improve due to low stock and strong demand
12-Aug-2024 11:39 AM
Nizamabad. Although the sowing area of turmeric has increased during the current year and the condition of the crop is said to be better due to good rains in major producing areas, but its new goods will start coming next year.
Meanwhile, due to reduced arrivals in major markets and strong domestic and export demand, the prices of this yellow spice are expected to rise somewhat.
Data from the Spices Board shows that during the first two months of the current financial year i.e. April-May 2024, turmeric exports declined by about 20 percent as compared to the same period last year as its domestic market price was running very high.
Prices started softening from June. The country market price was running very high. Prices started softening from June.
At present, about 50 lakh bags of turmeric are said to be in stock from the country, while new goods will start coming in February-March 2025. Each bag of turmeric weighs 55 kg.
This means that the equation between the demand and supply of this spice can remain complicated for the next few months.
Anyway, producers and stockists will not like to sell their goods quickly at low prices. Now there is going to be a strong festive demand for turmeric, while looking at the softening of prices, foreign importers can show good interest in its purchase.
The situation is not good in Bangladesh at present, although it is an important buyer of Indian turmeric.
According to trade analysts, the demand for turmeric usually softens in June-July and starts increasing from mid-August.
This time the stock is less and producers and stockists are also trying to suppress it, so there is a possibility of a rise in prices.
Due to good rains this time in states like Maharashtra, Karnataka, Telangana, Andhra Pradesh and Tamil Nadu, the next production of turmeric is expected to be better, but its new crop is still far away.
An analyst believes that after Ganesh Chaturthi, there may be a good increase in the price of turmeric, which is more or less likely to continue till after Diwali.
Turmeric sowing has been completed as expected. Compared to last year, this time the area under turmeric cultivation is expected to increase by 30-35 percent in Maharashtra,
while at the national level the area is expected to increase by 20-25 percent. However, earlier the area under turmeric cultivation was expected to increase by 60 to 100 percent because its price had reached a peak in May. But this did not happen.