Turmeric Supply Diminish and Market Goes Bullish
The availability of turmeric is dwindling as old stocks diminish. Thus, this leaves only a two-year supply in the markets. The anticipation of a shortage for delivering sold goods has increased future prices for April. Despite a brief correction, prices are expected to rise. Turmeric cultivation thrives in the sandy-loamy fields of South India. This includes Erode, Warangal, Duggirala, Cuddapah, Sangli, and Nizamabad.
While the crop is ready, dry turmeric won’t be available for another two months. The old stock, accumulated over several years, has been depleted. Thus, leaving minimal goods from the 2022 and 2023 harvests. Adverse weather conditions, particularly stormy rains in November, have further affected turmeric cultivation. Thus, this leads to spoilage in some lowland areas.
Turmeric Market Performance and Price Fluctuations
Turmeric prices have exhibited significant fluctuations. It reached a peak of $1,94 or Є1,79 per kg in Delhi during the peak season between May and June. However, just a week prior, Delhi’s prices had dipped to below $1,44 or Є1,32 per kg. The futures market trades turmeric at $1,77 or Є1,64 per kg for April contracts. Thus, operating three months ahead.
The bullish trend in the futures market has led traders to withhold sales in the producer market. So, this has resulted in limited delivery for future contracts. Consequently, turmeric prices have surged recently, with prices reaching higher. Despite this bullish trend, it’s advisable to capitalize on current increased prices.
Strategic Considerations for Exporters and Traders
Exporters and traders, anticipating rising prices, adopt a strategic approach. This is in response to market changes. Seizing profit opportunities at current elevated prices is deemed wise. It is due to limited material and future delivery constraints.
Understanding the turmeric market involves monitoring supply demand, weather patterns, and future trends. Exporters, remaining agile as the new crop arrives, optimize profitability. While managing risks tied to price volatility and supply constraints.
The turmeric market is witnessing a decline in supply, leading to bullish trends. With only a two-year supply left and anticipation of delivery shortages, futures prices for April have surged significantly. Despite fluctuations, prices are expected to rise further. Adverse weather conditions have impacted cultivation, amplifying supply constraints. Exporters and traders must adopt strategic approaches to capitalize on current prices.