Sluggish demand for turmeric from the domestic and export buyers have made the market weak. Prices are down by 40-50% from the highs achieved during the last season.
Traders feel that the market would ease further before achieving any support, as turmeric availability is good globally.
Futures are trading weak and the spot price in the Nizambad market as on Thursday evening stood at R7197.90 per quintal. According to the figures provided by Tamil Nadu Agricultural University (TNAU), turmeric prices in Tamil Nadu as well as whole of India had witnessed a steep increase for the past 20 months. In April 2009 it was R5,200 per quintal, in April 2010 it increased to R12,500 and during December it was trading in the range of R16,500-17,000.
?Selling pressure continues and the trend is down for short to medium term. Buyers are staying away as they expect the prices to come down, Stocks are good as the production in the last crop season was excellent,? Fayaz Hudani, analyst from Kotak commodities said.
According to estimates of the Tamil Nadu Agricultural University and trade reports, the 2010-11 crop is higher by 50-55 % at 70 lakh bags as against the normal of 45 lakh bags.
?The good weather conditions in the turmeric farming area are also adding to the sentiments. But it is too early to comment on the area sown,? he added. RK Viswanathan of Erode turmeric merchants association feels that the market would ease further to R6500 per quintal level before achieving any support. ?Demand is very low and the arrivals are good. The erode market is getting 5,000-7,000 bags every day,? he said.