The boom in the turmeric market is now likely to get paused. After a continuous increase in prices after Diwali, there is a possibility of a decline in turmeric due to low demand and high production.
Good crop in Maharashtra
The total output of Indian turmeric this year is expected to be the same as last year. A good crop in Maharashtra compensates for other provinces like Andhra Pradesh and Telangana, which have seen less sowing because farmers switched to more profitable crops.
This year’s carryover stock was more extensive than expected, resulting in a gradual price decrease during 2022. According to the central government’s statistics, the turmeric crop was 3.13 million tonnes, which was 1.17 million tonnes in the previous year. Turmeric sowing was increased by an average of 25% in the area, including Nanded in Maharashtra. Despite the increase in production, the average demand has decreased due to cold demand in December.
Price drop due to reduced demand?
After Diwali, turmeric prices increased by $0,036 to 0,048 per kg in Telangana and Maharashtra. Thus, now there is a perception of a fall in the price due to reduced demand. Due to the production of turmeric being surplus last year, the carry-forward stock is still witnessed in the market.
The average price of turmeric in Erode yard was $0,80 before Diwali, which increased to $0,86 in November. It has again declined to the level of $0,81 per kg. There is a possibility of further decline in the price.
Thus, considering the current situation, market analysts state that turmeric will likely see a recession in the upcoming days.
The Turmeric finger Salem double polished grade A prices were Recorded at $0,94 per kg FOB.