Turmeric market is estimated to trade high from the present low on increasing demand for the commodity from both domestic and export buyers. Higher carryover stocks and a bumper turmeric production during the 2016-17 season have kept the price under pressure throughout the season. India is the largest turmeric producer with 75-80 % of the global production. “The market touched the bottom in May 2017, and for the last fifteen days, the market has been steadily going up on higher exports and reports that the sowing might be lower on account of lesser returns. We expect the market to trade higher in the coming days,”Ritesh Kumar Sahu, fundamental analyst at Angel Commodities Broking said. Turmeric spot prices in the NCDEX counter on Wednesday evening closed higher at Rs5,800 per quintal. Turmeric prices were at a record high of Rs16,350 per quintal in November 2010 and touched a low of Rs3,360 per quintal in 2012. “This season the prices have been lower on less demand from upcountry and industrial buyers. Turmeric arrivals in the country are higher in the month of May. As per Agmarknet data, about 6,378 tonne arrived last month,” Angel sources report.
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Increased global demand for turmeric, especially in the pharmaceutical sector, drove its exports to the tune of 1.16 lakh tonne in volume and Rs1,241 crore in value terms in 2016-17. Indian turmeric has the highest curcumin content and is preferred by the extractors and grinders. “Near normal monsoon and good pre monsoon showers in the turmeric growing regions of Maharashtra, Tamil Nadu and Telengana may keep the sentiments bearish. The sowing starts from June and it is expected that the acreage may be lower this time due to higher carryover stocks and lower price realisation by farmers during the last season,” Sahu added.