Due to low demand, turmeric is still under pressure

Due to the local market’s ample supplies and the muted demand, turmeric prices yesterday declined by -0.06% to 6696. Due to increasing deliveries in important trading centers, Millers’ stockists are in a wait-and-watch mode. Arrivals of the fresh crop have increased; as of now, 7-8 lakh bags have entered the Nizamabad market, compared to 7 lakh bags reported in Sangli.

The market is overstocked, and with every increase in price, stockists attempt to release their inventory. The amount of turmeric shipped between April and January 2023 increased by 7.76 percent to 1,36,492.59 tonnes from 1,26,659.01 tonnes during the same period the previous year. Around 12,484.25 tonnes of turmeric were exported in January 2023 compared to 12,039.57 tonnes in December 2022, a rise of 3.69%.

Around 12,484.25 tonnes of turmeric were exported in January 2023 compared to 10,558.26 tonnes in January 2022, an increase of 18.24%. According to data from Spices Board India, India’s production of spices is probably down 1.5% on a yearly basis to 10.9 mln tn in 2021–2022 (Jul–Jun). The nation had produced 11.0 mln tn of spices the year before. Turmeric production was estimated at 1.33 million tonnes by the Spices Board, up 18.4% over the previous year.

The price finished at 6794.65 Rupees, up 24.1 Rupees, at Nizamabad, a significant spot market in AP. Technically, the market is in long liquidation as evidenced by the market’s drop in open interest of -0.17% to close at 14735 while prices are down by 4 rupees. Currently, turmeric is receiving support at 6662 and a move below could result in a test of the 6628 levels, while a move above could result in a test of 6756.

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