Turmeric prices seen firming up on lower arrivals, good festive demand

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Kochi | Published: November 28, 2014 12:27:51 AM

Tamil Nadu Agricultural University reports that the price of quality turmeric will hover around R6,800-R7,200 per quintal in December and is expected to increase in February

Turmeric prices are seen firming up due to lower arrivals in the market and good festive demand. Traders feel the market may have moved up further but for the lower quality of the commodity on sale. India is the largest turmeric producer with 75-80% of global production and demand for the commodity has been increasing rapidly from the medicinal and cosmetic industry.

“Turmeric prices are expected to move higher in the near term on expectation of festive demand and on reports of shortage of good quality stocks which dampened trading activities in a few markets,” Vinod TP of broking firm Geofin Comtrade said.

“Delay in sowing due to El Nino effect that beat the monsoon prospects earlier prompted farmers to plant fewer crop in major producing states like Tamil Nadu and Andhra Pradesh. Due to lower returns, growers turned their focus to other short-term crops,” he added. But Vinod believes a good carryover stock is likely to pressure prices.

N Raveendran, national consultant of National Agricultural Innovation Project (NAIP), said the new crop will be lower by 20% from the previous crop and almost 30% lower than the normal crop. “The market is expected to firm up in the coming days due to lower supply. The new crop and the carryover stock may not be enough to meet total requirements of the year,” he added.

Tamil Nadu Agricultural University reports that price of quality turmeric will  hover around R6,800 to R7,200 per quintal in December and is expected to increase in February. The expected export demand, demand from North India and the crop position is likely to provide good support to the market, Raveendran added.

Angel Commodities reports that crop in Nizamabad and Maharashtra might be 12-13% lower, which may support prices. “Lower level buying interest and limited arrivals may support the price. Inventory of turmeric at Erode is  around 20-22 lakh bags as compared to 27 lakh bags last month and in Nizamabad it stands at around 6.5 lakh bags,” Angel sources said. Turmeric exports during April-July 2014 are seen higher by 34 % in both volume and value.

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