Turmeric Prices Surge on Strong Demand and Lower Output Expectations

New Delhi, March 04 (Commodities Control): Turmeric prices experienced a significant surge in major markets, with prices rising by Rs 300-625 per quintal, driven by robust demand. The market is witnessing strong domestic and export inquiries, supporting prices. The anticipation of lower output, attributed to reduced acreage and yields, further contributes to the positive market sentiment. However, increased arrivals are causing price volatility in both spot and futures markets.

Arrivals surged to 52,950 bags from 27,200 bags in the previous session. Notable arrival figures include 30,000 bags in Nizamabad, 3,600 bags in Erode, 12,000 bags in Sangli, 2,500 bags in Hingoli, and 1,350 bags in Nanded. Despite the increase, arrivals were reported to be 30-40% lower than anticipated due to the significantly lower output.

Turmeric futures prices on the National Commodity and Derivatives Exchange (NCDEX) recorded a 3% increase following a weak session. The April and June contracts saw a rise of 2.8% and 2.4%, respectively. Price volatility is expected to persist, but with a positive short-term bias as new arrivals commence. Farmers and village-level aggregators are stockpiling material in anticipation of higher prices later in the season, contributing to expectations of lower-than-usual arrivals.

NCDEX Spot Prices (Rs/Qtl):
- Nizamabad - NCDEX Polished: 15,585
- Nizamabad - NCDEX Unpolished: 14,988
- Sangli - NCDEX Rajapore: 16,750

NCDEX Future Prices (Rs/Qtl):
- Apr-24: 17,432 (+478, +2.8%)
- Jun-24: 17,718 (+410, +2.4%)

Turmeric contract for APR delivery settled at Rs 17432/quintal showing an rise of Rs 478 over previous close of Rs 16954/quintal,The contract moved in the range of Rs 16850-17778 for the day. Open interest increased by 375 MT to 15370 MT, while trading volume increased by 985 to 4385 MT

Turmeric contract for JUN delivery settled at Rs 17718/quintal showing an rise of Rs 410 over previous close of Rs 17308/quintal,The contract moved in the range of Rs 17660-18070 for the day. Open interest increased by 10 MT to 1435 MT, while trading volume decreased by -130 to 130 MT.

Currently The spread between APR and JUN contract is -286 Rs/quintal.

(By Commoditiescontrol Bureau: +91 9820130172)