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Spot Turmeric Prices Up On Low Arrivals, Better Buying

13 Jun 2018 6:19 pm
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MUMBAI (Commoditiescontrol) - Turmeric prices continued to rule higher at major markets in the country on Wednesday due to lower arrivals and good demand from traders. Some of the major markets however remained closed today on account of Amavasya.

While at the key Erode, Duggirala, Basmatnagar and Cuddapah markets, traditing activities were as usual with a rise in prices of Rs 100-200 per quintal. The Prices may see an upside move in the coming days owing to declining arrivals.

Prices of turmeric have been stagnant amidst the monsoon forecast, as farmers and traders are looking at the early trends of monsoon, which is favourable for high yield, but in the report of IMD it has been said that rainfall may be less than normal in key producing states, i.e. Maharashtra, Andhra Pradesh and some parts of Tamil Nadu. If the prediction of IMD is proved to be true, it may be possible to see a decline in production in the coming year too.
Significantly, the arrival of turmeric is decreasing day by day. Farmers do not want to sell their produce at current prices. In the major markets of India, about 75 percent of turmeric has been arrived while, the rest of the produce is left with farmers. Some part of this can be sold by the farmers till June 15, because during this time money is required for the seeding/sowing. In the coming weeks, a slight rise in arrivals can be seen.

Turmeric production was seen lower in Andhra Pradesh, Maharashtra and Tamil Nadu in the last year due to lack of rainfall. However, despite the increase in the acreage, production in Maharashtra was reduced. However, according to reliable sources, 65 to 70 percent of new crop has arrived in Maharashtra. If this is taken into consideration, turmeric production is being seen less than the estimate because in the areas of Basmatnagar, Hingoli and Nanded, about 7 to 8 lakh bags have been arrived.

This year due to weak production, prices were seen very good till few days ago but owing to selling from speculators side, the prices were seen coming down again but farmers do not want to sell at a lower price. Therefore, there is a declining trend in the arrival.

According to the latest trends, now the stockists may enter in the market. The stockists are seen active every year before or after the second week of June. It can be seen this year too, which may bring upside in prices again.

Meanwhile, about 60 to 62 lakh bags of production is being estimated in India this year, which is about 10 percent less than last year, while the old stock has been reported almost 40 percent less, but the average rate of consumption is moving up with increase in population every year. After adding consumption from domestic and export fronts, the total average consumption is about 82 to 84 lakh bags. If we focus on the current data, then the production is of of 62 lakh bags and after adding old stocks of 20 to 22 lakh bags, the total supply is expected to be about 82 to 84 lakh bags.

However, according to reliable sources, it is becoming very difficult to assess the old stock in the market in the current situation as during the time of the note ban large traders and those with huge cash had stocked it abundantly but there is no data available for those stock in the market. But according to sources, the total such stock is likely to be about 8 to 9 lakh bags (2-3 lakh bags in Erode, 2 lakh bags in Nizamabad, 2-3 lakh bags in Maharashtra, 1 lakh bags in Warangal, Duggirala and Kadapa about one lakh bags in Kadapa). And during an upcoming uptrend, the said stock can come in the market, due to which volatility can be seen again.

According to traders, this year, there is not much risk in turmeric, if there is a slight delay in the monsoon, prices may move northwards to some extent.

According to the Agmarknet data, a total of 46,800 tonnes of turmeric was available in the first 25 days of May, while during the same period last year about 65,555 tonnes had been seen. The data shows that in this year production has declined.

According to sources, till now a total of 30 to 32 lakh lakh bags of spice have been stocked (5.5 lakh bags in Nizamabad, 5 to 6 lakh bags in Basmatnagar, Nanded, and Hingoli, about 5 lakh bags in Sangli, about 7 lakh bags in Erode, Warangal and 2 lakh bags in Duggirala and Kesamudram, 5 to 6 lakh bags in Kadapa and 1 lakh bags in other areas).

However, according to traders, turmeric can see a maximum upside of 12-15 per kg in the coming time. According to them, there is no possibility of further upside, but weak and delayed monsoon may spurt the market again.

Rates in Rs 100/kg:

Market Verity Min Max Pre.Min Pre.Max Arrival
Duggirala Gattha 6300 6600 6200 6500 600
Duggirala Finger 6300 6600 6200 6500  
Basmatnagar Gattha 7500 8000 7200 7700 1000
Basmatnagar Finger 8000 8500 7400 8200  
Erode Finger 7800 8000 7800 8000 2700
Erode Gattha 7600 7800 7600 7800  
Cuddapah Gattha 6200 6600 6300 6600 500
Cuddapah Finger 6500 7112 6600 7050  

(By Commoditiescontrol Bureau; +91-22-40015567)



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