Weekly Review - Turmeric

14-Sep-2024 06:36 PM

Low trade in turmeric: prices soft

New Delhi. Turmeric prices witnessed mixed trade during the current week. Prices remained subdued due to soft prices in futures at the beginning of the week. But at the end of the week, due to the futures closing with a rise, turmeric prices were quoted strongly in the spot markets. Sources say that a further decline in the current prices of turmeric is not possible. Because prices have fallen considerably. Apart from this, the arrival of good quality turmeric in the markets of the producing centers is also decreasing. Currently, 40/50 percent of the goods coming to the markets are coming with duds. Due to which a decline is being recorded in low quality goods, but the prices of good quality goods remain strong. Market sources believe that due to the low arrival of good quality goods, the prices of turmeric will definitely rise once in the coming days. Because there is still 4/5 months left for the new crop to arrive.

Futures Market

During the current week, after falling prices in the first four days of the week, prices closed higher on the fifth day. It is noteworthy that October's turmeric opened at Rs. 14032 and closed at Rs. 14152 at the end of the week. While December's turmeric opened at Rs. 14870, it closed at Rs. 14600 at the end of the week. Sources believe that due to unfavourable weather conditions at the production centres, the prices of turmeric will remain strong in the futures in the coming days.

Spot Market

During the current week, due to lack of demand in the spot markets, the prices of turmeric remained subdued at the previous level in the mandis of most of the production centres. But during the current week, the prices of turmeric were quoted higher in the Erode market. Because due to weak arrival and increasing demand, the price of turmeric in Erode market has increased by Rs 100/200 and at the end of the week, the price of bundle has been quoted at Rs 13000/13300 and the price of pod has been quoted at Rs 14000/14300. Prices remained suppressed at their previous level in Nizamabad, Sangli, Basmat and Hingoli market. Turmeric prices were also quoted at the previous level in Delhi market.

More sowing

Due to the prices of turmeric being higher than last year, turmeric has been sown on 30/35 percent more area at the production centers. Although the rains in some producing states in the past few days have damaged the crops. But 5/10 percent loss occurs every year. The weather is good in the producing states at present. If the weather remains favorable for the crop in the coming days as well, then the upcoming crop is estimated to be 75/78 lakh bags (each bag is 60 kg) or more. But this year, the stock of turmeric will be exhausted in the producing states at the time of arrival of the new crop. Last year, the outstanding stock of turmeric in the producing states at the time of new crop was 35/38 lakh bags. And the production was 48/50 lakh bags. Sources believe that due to weak overall availability in the upcoming season, turmeric prices can see a good rise in the year 2025.

Production forecast

Traders of producing centers have started forecasting the upcoming crop production. Traders believe that the production of turmeric on the Marathwada line (Nanded, Basmat, Hingoli) line of the major producing state Maharashtra will be 35/36 lakh bags. While the production on the Sangli line is expected to be 9/10 lakh bags. The production of the crop in Tamil Nadu is estimated to be 10/12 lakh bags. Production in Telangana is expected to be 14/15 lakh bags. Production in Andhra Pradesh is expected to be 2/2.50 lakh bags and production in other sources is also expected to be 2/2.50 lakh bags.

Export decreased - income increased

Due to high prices, on one hand there has been a decline in the export of turmeric, while on the other hand there has been an increase in income. According to the data released by the Spices Board, during April-June-2024, 46497.99 tonnes of turmeric was exported. And now it has reached $ 90.57 million. Whereas last year in April-June-2023, turmeric was exported to 57775.27 tonnes and the income was $ 62.92 million.