The Turmeric Scenario
In turmeric, a brewing storm hints at a possible minor increase per kilogram, adding spice to the market movements. The once plentiful old turmeric stock has dwindled significantly, leaving markets with only a meager two-year supply. With futures for April soaring, a potential shortfall in delivered goods looms, making the prospect of a surge even more compelling.
Turmeric’s Southern State’s Overview
Turmeric, nurtured in the sandy-loamy fields of South India, including Erode, Warangal, Duggirala, Cuddapah, Sangli, and Nizamabad, is at the heart of this article. The crop is on the brink of readiness, but the wait for dry turmeric extends for another two months. The existing stock from previous years has been ground to a halt, with remnants from 2022 and 2023 scantily occupying the shelves.
However, the anticipated new crop faces challenges in various producing areas due to unfavorable conditions, including storms that disrupted lowland regions in November.
Supply and Demand Equation
In a precarious balance, if the forceful cultivation yields favorably, expectations hover around 68-70 lakh bags, potentially saving 10 lakh bags from the old stock. Contrastingly, export and domestic consumption are nearing 140 lakh bags, creating a potential deficit. The volatile nature of the turmeric market was evident during the peak season of May-June, witnessing bullish fervor that pushed prices just a week prior.
Futures Market Predictions
The futures market, trading for April, has shown bullish tendencies, prompting traders in producer markets to halt their offloading activities. With limited goods available for delivery in the futures market, the last few days have seen a surge in Turmeric Erode Age Inte Gatta 20. Quality goods are fetching even higher prices.
Conclusion
In the turmeric market, a potential price surge looms due to a dwindling two-year supply of old stock and bullish trends in April futures. Turmeric, primarily cultivated in South India, faces challenges in upcoming crops. With expected favorable yields, the industry anticipates 68-70 lakh bags against the rising demand for 140 lakh bags. The bullish market saw prices peak in May-June, prompting traders to hold offloading. Despite market complexities, seizing the strategic opportunity to capitalize on increased prices is advisable as the turmeric pipeline faces scarcity in current availability and anticipated future deliveries.