Weekly Review-Turmeric

17-Aug-2024 07:18 PM

Low spot trade of turmeric: More sowing at production centers

New Delhi. For some time now, spot and local trade in turmeric has remained limited. Due to which the prices are also suppressed. Looking at the current situation, there is no possibility of a rise in prices, but due to the prices falling significantly, the falling prices should now stop. Sources say that although it is true that due to the prices of turmeric being higher than last year, the area of ​​sowing has increased and during the current season, the area of ​​sowing of turmeric in the producing states has been 25/30 percent more. After sowing, the weather has also remained favorable for the crop till now. Sources believe that during the current season, the area of ​​sowing of turmeric in the country will be around 4/4.25 lakh hectares. Whereas last year turmeric was sown on 3/3.25 lakh hectares.

Fall in prices

During the current week, there was a fall in the prices of turmeric. On the one hand, there was an inflow of low quality goods at the production centers. On the other hand, local and export trade remained low. The arrival of donkey goods was also high. Daily arrival of turmeric in Erode market has increased to 5/6 thousand bags. And during the current week, prices remained sluggish by 300/500 rupees per quintal. Arrival in Hingoli market has reached 8/10 thousand bags and prices have also been quoted with a decline of 200/400 rupees per quintal. However, prices are still running higher than last year. But due to insufficient stock in the markets of producing centers, trade estimates are being made that prices will rise in the coming days. Because there is still about 6 months left for the new crop to arrive. Due to which, the markets may see a rise in the months of October-November. There was limited fluctuation in the prices of turmeric in the futures market during the current week. Turmeric of the month of August closed at Rs 15650 after opening at Rs 15620. Whereas the October price opened at Rs 16498 and closed at Rs 16112 at the end of the week.

Falling prices should stop

Sources say that the falling prices of turmeric should stop now. Because there is a shortage of good quality goods in the markets. Currently, most of the goods coming to the markets are of low quality. Currently, the stock at the mandis of the producing centers is considered to be less than last year. Because last year the stock at the producing centers was reduced due to low production. Last year, the production of turmeric in the country was around 45/50 lakh bags (one bag is 60 kg). But the outstanding stock at the time of arrival of the new crop was 35/38 lakh bags and the total availability was 80/85 lakh bags. But this year the outstanding stock on the new crop will almost end. And even after the arrival of 70/75 lakh bags of the upcoming crop, the availability of turmeric will be less in the coming season. Sources say that if the weather remains favorable for the crop in the coming days, then the yield will be 70/75 lakh bags. If the weather is bad, then the yield may decrease. In the year 2023, the production of turmeric in the country was 80/85 lakh bags and in 2022, the production was 75/80 lakh bags.

Stock

Knowledgeable traders say that at present there is news of 32/35 lakh bags of turmeric stock in the markets of the producing centers. Sources say that at present the stock is estimated to be 5 lakh bags in Sangli, 4/4.50 lakh bags in Nizamabad, 4/5 lakh bags in Duggirala and Kadapa, apart from 1.50/1.75 lakh bags in Warangal. The stock in Erode and Salem is believed to be 4 lakh bags. Whereas the stock in Marathwada is estimated to be 11/12 lakh bags.

Exports decreased

Due to high prices of turmeric during the current season, turmeric exports have declined. According to the data released by the Spices Board, during the year 2023-24 (April-March), 162019 tonnes of turmeric has been exported, whereas in the year 2022-23, the export was 170094 tonnes. Exports have also decreased in the first two months of the current financial year 2024-25, April-May. In April 2024, exports were 14109 tonnes, whereas in April-2023 last year, exports were 19590.87 tonnes. In May 2023, 19827.86 tonnes of turmeric was exported, whereas in May 2024, exports were 17415 tonnes. The total exports during January-May - 2023 stood at 85528.23 tonnes which declined to 72371.43 tonnes in January-May 2024.