Weekly: U-Turn Likely In Turmeric Prices On Low Level Buying

NEW DELHI (Commoditiescontrol) - As the turmeric prices are decreasing day by day, the stockists sitting in the spot market are stocking the spice.

Significantly, for the last few days, turmeric futures are consistently showing weakness, due to which there is an atmosphere of fear in the spot market traders. But in the spot market at the lower price level, big traders are seen buying turmeric, which is indicating that there can be a break on slump in the coming days.

So far, there has been good monsoon rain in the key producing areas so that there is a possibility of increase in the yield. But due to excessive rainfall in the key producing areas of Kerala and Karnataka, the crop has been destroyed. Besides, news of low rainfall is coming up from few parts of Sangli.

Rainfall in the areas of ​​Nizamabad and Warangal is more than normal. If the percentage of rain remains the same then excessive water can damage the turmeric crop in the coming days.

In the Maharashtra (areas of Basmatnagar, Nanded and Hingoli), there are reports of normal rainfall. The same story is from Tamil Nadu and the crop seems to get benefit.

After talking to many traders we found that this year turmeric production can be around 75 to 80 lakh bags. At this time turmeric stock is around 28 lakh bags, which can last between 5 to 7 lakh bags at the end of the year, so that availability of turmeric in the coming year is likely to be around 85 lakh bags. On the contrary, domestic and international consumption are also considered to be almost the same so there is no possibility of more downside in turmeric.

At present, the speculators have also been active in the market due to which there is a continuous decline in turmeric futures. But now the interest of people in the spot market is increasing, so that in the coming time there may be an increase in buying, which can help turmeric at the lower level. Apart from this, after September 15, the demand for turmeric in the domestic market (Dussehra and Diwali) can be increased.

The daily arrivals of turmeric have been limited to 12 to 15 thousand bags in the spot market. Also, arrival is gradually decreasing, due to which the price of turmeric can be supported in the coming days.

(By Commoditiescontrol Bureau)