The overall price of Turmeric and its varieties remained steady this month, and last week’s spot market witnessed a mixed sentiment.
Current Scenario
There are reports of the markets having a lower supply of ending stocks, further supporting the crop’s prices, even when the supply increased by 45 percent last week since the stockists and farmers started releasing the old stocks as the market went on an appreciative mode after the festival holidays.
Customers are currently buying according to the need, and the sentiment is towards doing business after seeing the new crop. This attitude has put a bit of pressure on the spot markets last week.
Currently, the new crops are arriving in a low quantity between 500 and 1,000 bags, where each bag weighs about 70 kgs. These crops have 18 to 22 percent moisture content.
The buyers are active as they want to get hold of the older stocks before the market receives new crops. Also, the prices are helping the buyers, and the limited supply of 48 thousand MT compared to last year’s 62 thousand MT has made the market steady.
As per experts, some stockists are holding on to their stocks to expect the prices to go higher. Nizamabad, the Turmeric spot market benchmark, received 2,226 MT of the crop compared to last year’s 2,590 MT during the same time. The arrival is down by 14.05 percent.
Prediction
It was earlier predicted that the estimated production was 489 thousand MT compared to last year’s 446 thousand MT. But after the reports of crop damage in Maharashtra, Telangana, and Andhra Pradesh, it has been revised to 467 thousand MT.
However, the trade sources and experts believe that the damage can be more than that due to the earlier heavy rainfall. Turmeric being an underground crop, the exact extent of damage and quality will be known only from February onwards when the new crops arrive in the market in full swing.
Price Trend For January
Turmeric Finger (Salem, Double Polished – No.1)
| Date | Price |
| January 27 | $1,27 per kg FOB |
| January 17 | $1,26 per kg FOB |
| January 13 | $1,25 per kg FOB |
| January 5 | $1,26 per kg FOB |
| January 4 | $1,25 per kg FOB |
| January 3 | $1,23 per kg FOB |
In Nizamabad, the trading was done for $113,64 per 0.1 MT, and it is expected there won’t be much correction in this price by the NCDEX due to the good demand for the crop. However, as per experts, the price can range between $109,63 per 0.1 MT and $120,32 per 0.1 MT. There are chances that the prices can go down if the farmers decide to sell aggressively since the price is up compared to last year.
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