Spot Turmeric Suffers amid Lack of Stockists' Interest, Futures End Closer to Support Levels

Mumbai (Commoditiescontrol) - Mixed price trend was spotted in a handful of turmeric markets operational on Monday. Meanwhile futures prices of the yellow spice on NCDEX settled weaker for the second straight session today.

It is to be noted that the Gathha variety of turmeric gained Rs 200/Quintal at Basmatnagar mandi despite increased arrivals as compared with the last session. Meanwhile Gattha and Finger varieties at Nanded mandi declined Rs 100-400/Quintal amid higher arrivals at 12,000 bags vs 11,000 bags in the last session.

It is in fact the severe lack of demand and pale trade sentiments that is leading to dwindling supplies at the spice markets amid pandemic-led restrictions. Basmat mandi was operational alongside Hingoli and Nanded, while Warangal, Sangli and Erode mandis were shut.

It is to be noted that the shutdown and restrictions in many States have put stockists on the backfoot. “Turmeric markets in Andhra Pradesh, Maharashtra and Tamil Nadu are not seeing any demand. There are no buyers since they fear that they may not be able to send it to the stockists,” said a trader in Nizamabad.

This is because stockists are not sure if kirana or grocery shops which buy turmeric or other commodities from them would be fully functional or have the time to take the produce.

On the other hand, turmeric futures dipped lower on Monday, as the May contract on NCDEX settled close to its critical support levels of Rs 7,400/Quintal.

Turmeric futures ended in red for the second straight session. On NCDEX, May and June contracts ended 0.7-0.74% lower, at Rs 7,462 and Rs 7,624 per Quintal respectively.