Nizamabad Turmeric Prices Rise Rs 100 amid Fear of Reduced Output, Strong Futures

Mumbai (Commodities control) - Nizamabad turmeric prices moved Rs 100 higher for all the varieties of yellow spice , barring the finger variety that fell Rs 100 on Tuesday. Turmeric prices in other major spot markets settled flat on Tuesday.

The yellow spice settled steady in Basmatnagar amid arrivals of 3,000 bags, unchanged from last session. Turmeric was quoted unchanged in Sangli and Warangal mandis amid stable arrivals of 2,000 bags and 100 bags respectively.

Turmeric prices were flat in Erode and Nanded mandi amid arrivals of 2,500 bags and 1,100 bags of yellow spice.

On NCDEX, turmeric April and May futures settled higher for the second straight session on Tuesday. April futures closed Rs 114 higher, while May futures ended Rs 168 stronger.

According to the traders, prices are poised to gain as there are fears that there could be as much as 25 percent crop loss in states such as Telangana and Andhra Pradesh. Even in Maharashtra’s Sangli district, the crop has been affected.
Excess rainfall during October had affected the development of fruit in the three States. Even in Tamil Nadu, another major producer, production was lower due to non-availability of farm labour in the aftermath of the novel Coronavirus pandemic.
During the 2019-20 season (July-June), India’s turmeric production was estimated at 9.46 lakh tonnes compared to 9.61 lakh tonnes the previous year, despite the area under the crop rising by 4,000 hectares to 2.57 lakh hectares.
Market expects turmeric production to be around last year’s level, though the trade was talking of plus or minus 10 percent.
The turmeric crop has begun arriving in Telangana and Andhra Pradesh since early this month, while it will start in other parts of the country in a month’s time.
Exports have helped turmeric prices gain. Exports have increased by nearly 40 per cent this fiscal, with Bangladesh being a major buyer.
According to the Spices Board, Indian exported 99,500 tonnes of turmeric valued at Rs 8,581 crore during April-September 2020 against 69,500 tonnes worth Rs 6,338 crore during the same period previous fiscal.