Turmeric Spot Prices Stable, NCDEX Futures Continue to Decline

Mumbai, February 22 (CommoditiesControl): Turmeric prices in major markets remained mostly stable, except in Sangli, where prices saw a decline of Rs 200 per quintal. The overall stability was influenced by high demand from domestic and export markets, although increased arrivals have prevented significant price movements in both futures and spot markets.

Domestic and export demand for turmeric is anticipated to stay strong, and this season is expected to witness higher-quality arrivals compared to the previous two seasons. Improved rhizome quality is anticipated due to favorable weather conditions, in contrast to the lower-quality material caused by heavy rains and floods in the previous season.

A few markets were closed due to alternate opening times and festive holidays. Arrivals were reported at 28,900 bags, nearly the same as the previous session. Nizamabad reported 15,000 bags, Erode 3,600, Sangli 7,000, and Nanded 500. However, arrivals were reported to be 30-40% lower than expected due to significantly reduced output.

On the NCDEX markets, turmeric futures prices continued to fall, decreasing by 0.7% in April and 0.8% in June. The market is expected to remain volatile in the near term as new arrivals commence. Farmers and village-level aggregators are stockpiling material in anticipation of higher prices later in the season, leading to expectations of significantly lower arrivals than usual.

In December, EXIM data was released, revealing a 13% lower export volume at 10,426 MT. Imports, on the other hand, rose by 29.8% year on year to 1,217 MT, driven by increased imports from Indonesia, Myanmar, and Ethiopia. Lower exports to Bangladesh contributed to the overall decrease in December exports, with a 68% decline reported at 681 MT. Cumulative exports for the Apr-Dec period were reported at 1,21,171 MT, down by 1.8% YoY.

NCDEX Spot Prices (RS/Qtl):
- Nizamabad - NCDEX Polished: 14,323
- Nizamabad - NCDEX Unpolished: 13,836
- Sangli - NCDEX Rajapore: 15,834

NCDEX Future Prices (RS/Qtl):
- Apr-24: 15,320 (-114, -0.7%)
- Jun-24: 15,570 (-120, -0.8%)