Turmeric Markets Show Steady to Firm Trend; NCDEX Futures Edge Higher

Mumbai, February 28 (Commodities Control): Turmeric spot prices continued to exhibit a steady to firm sentiment in major markets, with robust buying activity driving an increase of Rs 200-600 per quintal in key centers such as Erode, Basmatnagar, and Nanded. While these markets experienced a surge in prices, other centers reported stability.

The upward price movement is fueled by the anticipation of lower production resulting from a significant reduction in acreage and yields. Both domestic and export inquiries are expected to stimulate demand, although increased arrivals are causing price fluctuations in both spot and futures markets.

Despite all markets being operational, lower arrivals played a pivotal role in triggering a price rally in both spot and futures markets. Anticipated robust domestic and export demand is expected to be met with higher-quality arrivals compared to the previous seasons. Improved rhizome quality is projected for the current year, contrasting with the lower-quality material produced last season due to heavy rains and flooding.

Market reports indicate arrivals totaling 21,800 bags, representing a decrease of 700 bags compared to the previous session. Maharashtra witnessed a few market openings, but farmers withheld their produce due to rising prices. Notable arrival figures include 11,000 bags in Nizamabad, 4,400 in Erode, 5,000 in Basmatnagari, and 1,000 in Nanded. Arrivals were reported to be 30-40% lower than expected, underscoring the impact of significantly reduced output.

Turmeric futures on the NCDEX closed marginally higher after hitting the upper circuit in the previous session. The April contract recorded a 0.3% increase, while the June contract saw a 0.7% rise. Expectations of continued volatility with a positive bias are prevalent in the near term as new arrivals are anticipated. Farmers and village-level aggregators are stockpiling material in anticipation of higher prices later in the season, contributing to the projected lower-than-usual arrivals.

NCDEX Spot Prices (RS/Qtl):
- Nizamabad - NCDEX Polished: 14,830
- Nizamabad - NCDEX Unpolished: 14,264
- Sangli - NCDEX Rajapore: 16,354

NCDEX Future Prices (RS/Qtl):
- Apr-24: 16,652 (+48, +0.3%)
- Jun-24: 17,054 (+114, +0.7%)

Turmeric contract for APR delivery settled at Rs 16652/quintal showing an rise of Rs 48 over previous close of Rs 16604/quintal,The contract moved in the range of Rs 16484-16900 for the day. Open interest decreased by -140 MT to 14230 MT, while trading volume decreased by -2130 to 3200 MT.

Turmeric contract for JUN delivery settled at Rs 17054/quintal showing an rise of Rs 114 over previous close of Rs 16940/quintal,The contract moved in the range of Rs 16764-17302 for the day. Open interest increased by 90 MT to 1320 MT, while trading volume decreased by -375 to 330 MT.

Currently The spread between APR and JUN contract is -402 Rs/quintal.

(By Commoditiescontrol Bureau: +91 9820130172)