India: Turmeric Market Failed to Improve the Price in February

The overall trend for Turmeric in February was between weak and steady. There have been few price drops in the month, with only one price hike earlier.

Factors That Impacted The Price 

• The earlier price hike in the commodity was due to the market having low ending stock, while the buyers were reluctant to purchase the new crop due to its low quality.
• The new crop that arrived in the market earlier in the month was reported to have a moisture content between 18 and 22 percent.
• This led to buyers purchasing the old stock more while its supply was low. As a result, compared to last year, when the ending stock stood at 62 thousand MT, this year it was recorded at 48 thousand MT in early February.
• As the stockists held on to their old stock, prices went up.
• The increase in the price led to inactivity in the market, and the price went southbound.
• But the overall demand for the spice kept the market steady in-between the price drops.

Predictions

• The recent price drop is temporary and as predicted it became steady.
• The price drop can be expected with the arrival of new crops in the market. But the overall low yield of the crop will keep the market up.
• Several factors contributed to the low yield of the crop. The primary is the unseasonal rainfall that damaged the blubs and crops.
• Telangana and Andhra Pradesh have already reported low yields due to crop damage between 8 to 10 percent.
• Maharashtra registered itself as having a considerably low yield this year.
• Compared to last year’s 446 thousand MT reports of crop damage in Maharashtra, Telangana, and Andhra Pradesh, the yield has been revised to 467 thousand MT for this year.
• The demand for turmeric is high in domestic and international markets because of its medicinal properties, which will help the price.

Price Trend For January

Turmeric Finger (Salem, Double Polished – No.1)

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