The news of less production of turmeric has been circulating in the market, but the expected pace hasn’t picked up due to heavy losses suffered by traders.
Despite a decrease in sowing and arrival, there is still bullishness in the market regarding prices. Traders have suffered losses for the past ten years in turmeric, and those with stock are still stuck with high prices.
Cultivation is decreasing
Turmeric cultivations are decreasing daily in all growing regions of South India, including Erode, Warangal, Cuddapah, Duggirala, Nizamabad, Sangli, and Idukki. This time also, there has been a significant decrease in sowing, and the arrival in Erode has decreased by 34-35 percent compared to last year’s same period. Due to less sowing and adverse weather conditions at the preparation time, the production of turmeric has taken a hit
The international markets also show a standstill in prices, while domestic consumption of turmeric has increased. However, old turmeric lying idle for many years has softened the impact of low production. Traders fear that the stock sentiment may continue to remain low as those who purchased are still waiting for the right opportunity to sell.
Future Scenario
Nonetheless, experts estimate that 6.0 to 6.2 million bags of turmeric will be produced this season. Plus, there has been a cut in old turmeric this time, indicating that there is no scope for further reduction. This time around, turmeric has the potential to make up for all the previous losses.
The peak season of turmeric is currently ongoing, and wedding season demand is anticipated to be tremendous. Therefore, despite the current slow rise, there is still hope for the golden spice to bring in profit for traders. Undoubtedly, the situation will become more apparent after a few days.