Due to profit taking and an improving crop condition, turmeric prices yesterday decreased by -1.42% to 16844. Due to the scarcity of high-quality products on the market, losses in turmeric are probably capped. Turmeric’s price is mostly determined by how well the crop is growing and being sown, and the crops there are now even more concerned as drier weather is predicted for the south and the heartland.
Although the sowing process is practically finished in Maharashtra and is expected to pick up in Andhra Pradesh and Tamil Nadu (NS: TNNP), the irregular monsoon rainfall has slowed it down. El Nino’s impending threat has an adverse effect on the future turmeric harvest. According to weather forecasts, El Nino will likely become active in July, which might lead to decreased precipitation and drought conditions.
Produce like turmeric that heavily relies on monsoon irrigation may be particularly affected by such situations. Expectations of a 20–25% decline in turmeric seeding this year are a result of farmers’ change in focus, particularly in areas like Maharashtra, Tamil Nadu, Andhra Pradesh, and Telangana. When compared to the same period in the previous year, the amount of turmeric shipped from April through May 2023 increased by 27.55 percent to 39,418.73 tonnes.
The price finished at 14543.05 Rupees and increased by 130.8 Rupees in Nizamabad, a significant spot market in AP. Technically, the market is experiencing new selling as open interest increased by 5.77% to settle at 15300 while prices decreased by 242 rupees. Currently, turmeric is receiving support at 16674, and a move below that level could result in a test of the 16502 levels. Meanwhile, resistance is now likely to be seen at 17134, and a move above could result in a test of the 17422 levels.
