Turmeric Market in India improved in 2022 Than 2021

The overall sentiment for Turmeric and its varieties were sold for a better price than last year. The lowering of the last year’s stock in the market has helped in keeping the price in appreciative mode. Though there has been a lowering in the sowing area of the crop, good production is expected for it. As of now, the reports suggest the crops are of good quality, and there is no news of any crop damage that can affect the final production of Turmeric in the growing regions.

Overall Scenario Of Turmeric For The Year

• In the months of May, October, and December, there was a significant price hike for Turmeric in the spot markets.
• Slight dips and a quick recovery in the prices were marked in February, March, August, and November.
• Major and steady price drops were observed in the month of June, July, and September for Turmeric.
• April was the only month where the price remained stable without any significant changes.

Factors supported the price.

Several factors resulted in the price moving upward compared to last year for Turmeric. They were:

• Good local demand for the crop and the availability of superior quality crops across the year helped in the price staying better than last year.
• There was an increase in buying activity and the old stock in the spot markets because of the news of unseasonal rain in the growing regions. This activity supported the price of the spice.
• It was also reported in August that the news of improved sowing of Turmeric has positively impacted the price of the spice in the market, as it became stable.
• The buying activity also increased in early September that helped in the quick recovery of the market due to the news of infestation of the plants and the possibility of low-quality crops being produced due to the heavy rains in the areas.
• Despite inferior quality arriving at the market during the middle of the year, the good export and domestic demand kept the price better than last year.
• The other factor that supported the price for the spice is the ending stock being less than last year, which was estimated to be 62 thousand MT compared to last year’s 98 thousand MT.
• One factor that negatively impacted the turmeric market’s price is restrictions on the export imposed due to the COVID-19 and the high shipping costs.

Current Situation

• The crop quality standing in the growing region is reported to be of good quality.
• The weather is supporting the growth of the crops.
• As per Andhra Pradesh’s agricultural data, on October 12, the sowing of Turmeric was completed at 19,995 hectares. It is more than the normal season when the sowing is about 19,551 hectares, but it is less than last year, where the sowing area stood at 20,942 hectares.
• Traders expect that the restriction put on South Asian countries due to COVID-19 will ease in the coming months, which will increase the export demand. Currently, the restrictions and the increase in freight prices have made the price for Turmeric go flat at times of the year.
• Earlier, heavy and unseasonal rain was expected to cause water-logging and damage the crops, but no such news has come forth so far.

Arrivals In The Market

Nizamabad, the benchmark of the Turmeric market, reported having received 86,262 MT of the crop between January 1 and December 7, 2021. Last year, the arrival was quoted to be 80,255 MT during this period. Hence this year, the market has 7.48 percent more crop arrival.

The prices were impacted since the market was closed between March 23 and May 18 for the COVID-19 lockdown.

Prediction

It has been reported that the sowing for the current year for Turmeric is about 12,841 hectares which is less than last year, i.e., 12,367 hectares. Compared to the average sowing of Turmeric, which is about 19,551 hectares, it is significantly less this year.

However, with the good crop quality and weather being favorable, it has been estimated that turmeric production in India is going to go up by 9.64 percent compared to last year. This year for the market year 2022-23, the production is estimated to be around 489 thousand MT compared to 446 thousand MT of last year. This can eventually put a cap on the price.

Experts predict that since the prices are on the higher side, farmers can start selling their crops aggressively, bringing down the price below the forecasted range between  $94.37 and $107.47 per 0.1 MT.

Price

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

The National Commodity and Derivatives Exchange has ended the turmeric future for November delivery at $98.62 per quintal, which is 1.70 percent higher than the price settled for an average year and $96.16 per quintal for December.

Also, it should be noted on December 7, 2021, the NCDEX quality of Turmeric at Nizamabad was $99.61 per 0.1 MT compared to last year’s $76.02 per 0.1 MT.

Turmeric market Arrivals

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