Turmeric prices are expected to remain subdued in the Indian market due to sluggish demand and reports of good sowing in major producing states.
Traders, however, feel that the commodity could gain if rainfall is lower than normal in July.
India is the largest turmeric producer with 75-80% of the global production and demand for the commodity has been increasing rapidly from the cosmetic industry.
“Turmeric futures are likely to trade down due to sluggish demand in major spot markets. Also, sowing of the crop is expected to gain pace due to good rains in major growing areas. Furthermore, prevailing subdued demand and ample accumulated stocks might prevent any strong recovery for the prices,” Vishidha Vijayakumar, Research Analyst at Geofin Comtrade told FE.
“However, weak monsoon forecast by IMD may give some support as farmers may lower crop sowing. Expected rise in demand in coming months and lower production estimates could limit sharp fall in prices,” she added.
Geofin reports that total stocks of turmeric in NCDEX accredited warehouses increased to 13,754 tonne as on June 17 from 13,368 tonne a week ago.
Spot prices at the NCDEX counter on Tuesday evening showed R7,363.50 per quintal.
Angel Commodities reports that the commodity is expected to trade down on good progress of sowing in Karnataka, Maharashtra and Andhra Pradesh. Sowing of turmeric in Andhra Pradesh for the 2014-15 season is reported at 0.13 lakh ha, as against 0.1 lakh ha last year. The area in Telangana stood at 0.446 lakh ha against 0.431 lakh ha last year.