The stock of turmeric has drastically reduced due to traders incurring huge losses for several years. Additionally, farmers have shifted away from the turmeric trade and converted to maize and soybean, leading to a further reduction in its production.
The delivery of turmeric in the futures market is minimal because the old stock has been cut by 80-82 percent. Moreover, the old stock has been consumed in grinding for the last five years, and now only turmeric of two-three years is left, accounting for only 18 to 20% of the stock.
Not enough stock – an investment opportunity
There is not much stock in the producer markets, and the old turmeric has been reduced to very little in the cold stores. Therefore, the correction will continue to come and will continue to increase, making it a promising investment opportunity.
Production decreased by 40%
The future scenario also looks bright for turmeric investors. The production of turmeric has decreased by 40% this year, and it is expected that getting more than 6.0-6.2 million sacks of turmeric bundles will be challenging. Additionally, the quantity of turmeric in Salem, Nizam, and Sangli lines is also not much this time, which has led to an increase in the futures market of May.
According to experts, turmeric traders are scared of the current bull run, but this time, the equation has changed. Thus, market mavens with its decreasing production and increasing demand, investing in turmeric now can bring good profits in the future.