Good rainfall expected to boost turmeric output for next season

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New Delhi | Published: September 7, 2017 2:18:42 AM

Turmeric production for the next season is estimated to be as good as last season with the producing regions in southern India experiencing good rainfall in the past few weeks. Sowing of the commodity was last seen marginally lower than the preceding year but the higher rainfall is expected to boost the yield, traders said.

Good rainfall , turmeric outputIndia is the largest turmeric producer with 75-80% of the global production.

Turmeric production for the next season is estimated to be as good as last season with the producing regions in southern India experiencing good rainfall in the past few weeks. Sowing of the commodity was last seen marginally lower than the preceding year but the higher rainfall is expected to boost the yield, traders said.

India is the largest turmeric producer with 75-80% of the global production and demand for the commodity has been increasing rapidly from the medicinal and cosmetic industry.

“Sowing is seen marginally lower, but rainfall in the last few weeks is expected to improve yield and the production for 2017-18 season would be more or less similar to last year at 10-11 lakh tonnes,” said Ritesh Kumar Sahu, Fundamental Analyst at Angel Commodities Broking.

Commodity report by the broking firm Angel reports that the production estimate of turmeric for 2016-17 is pegged at 11.32 lakh tonnes by government in the 3rd advance estimate, higher from 9.43 lakh tonnes in 2015-16. For 2017-18, turmeric sowing in Telangana, as on 16th August, was down 1% to 44,411 hectares as compared to last year acreage of 44,919 hectares.

Turmeric spot prices in the NCDEX counter on Wednesday closed higher at Rs 7,686.75 per quintal. Turmeric prices touched a record high of `16,350 per quintal in November 2010 and touched a low of Rs 3,360 per quintal in 2012. Very high returns from turmeric prompted farmers to switch from cotton, tapioca and soybeans in many places.

R K Viswanathan of Erode Turmeric Merchants Association said that production would be lower in Tamil Nadu, but would be more than compensated from Maharashtra and Andhra Pradesh. He expects the market to trade sideways for the next couple of months until the new crop arrives in the market.

“Turmeric futures are expected to trade sideways due to good rains in turmeric growing areas in Telangana and Karnataka. However, short selling by the market participants may push prices higher but prices look weak for near month contract,” Sahu added.

Increased global demand for turmeric, especially in the pharmaceutical sector, drove its exports to attain figures of 1,16,500 tonnes in volume and crossed Rs 1,241 crore in value terms in 2016-17. There are expectations of improved demand in coming weeks from the export market. Curcumin content of turmeric is an important factor in the price of the commodity and trade. Indian turmeric has the highest curcumin content and is preferred by the extractors and grinders.

K M Shivakumar, from the Tamil Nadu Agricultural University (TNAU) said that non-traditional areas like North East have also started to farm turmeric in the last few years due to robust returns and this may upset the fundamentals of the current trade.

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