October more or less had a stable month for turmeric, with only one time the price dropped. However, on October 7, the prices of turmeric varieties reached their highest of the month when Turmeric Finger Salem, Double Polished No.1, was traded for $1,14 per kg FOB. Similarly, Turmeric Finger, Nizamabad, Double Polished Dubai Quality and Turmeric Finger Nizamabad, Double Polished Europe Quality reordered so far the month’s highest at $1,02 per kg FOB and $1.07 per kg FOB, respectively.
Unfortunately, the prices for all the varieties dropped on October 12, which was the lowest of the month. For example, Turmeric Finger Salem, Double Polished No.1 was sold at $1,11 per kg FOB, Turmeric Finger, Nizamabad, Double Polished Dubai Quality at $9,99 per kg FOB, and Turmeric Finger Nizamabad, Double Polished Europe Quality at $1,05 per kg FOB.
For the rest of the month, the prices remained the same before they increased on October 25, when Turmeric Finger Salem, Double Polished No.1 was sold at $1,14 per kg FOB, Turmeric Finger, Nizamabad, Double Polished Dubai Quality at $1,02per kg FOB and Turmeric Finger Nizamabad, Double Polished Europe Quality at $1,07 per kg FOB.
It has been reported the price at Nizamabad for the crop had been steady to firm throughout the month. Also, earlier this month, there was an increase in the crop supply in the anticipation that there would be more demand for the spice for Diwali. At present, it seems the tension has been accurate since the market has increased for the crop.
However, the future of turmeric can move towards a bearish trend, according to experts, due to the increased production of the crop compared to last year. The increased quantity can put pressure on the prices in the coming months. It is expected that the production of turmeric will be up between 10 and 15 per cent by 2022. India will likely produce about 489 thousand MT compared to last year’s 446 thousand MT.
However, Andhra Pradesh has sowed less than last year and the typical year. This year the state completed its sowing at 19,376 hectares compared to the average year’s 19,551 hectares and the previous year’s 20,942 hectares. But the overall production of the crop across the country will increase because the weather condition is favourable, and the present crop quality is also reported to be good. Despite the heavy rain, there is no news of any crop damage in most areas. But there has been news of waterlogging in the low-lying areas, which can negatively impact the crops. The full extent of how the crops fared due to the heavy rain and waterlogging will become evident in the next few weeks.
There have also been reports of some crops arriving in the market this month that are having insect infestation issues, but the overall arrival of the crop has been in sync with the average appearance.
However, the traders believe that the easing of the COVID-19 restriction put on South Asian countries will increase the export demand. Thus, the prices will keep trending up. Currently, the limits and the increase in freight prices have made the price for turmeric go flat.
The National Commodity and Derivatives Exchange has ended the turmeric future for November delivery at $98.62 per quintal, 1.70 per cent higher than the price settled for an average year and $96.16 per quintal for December.
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