Due to profit booking and weak domestic demand, turmeric prices declined

On profit-taking yesterday, the price of turmeric dropped by -6% to $15204 due to the domestic demand remaining at its current level. The lack of export inquiries is expected to affect market sentiment. Together with a steep increase in prices, export demand has stalled. A further concern for turmeric crops that will limit the losses is the ongoing sowing and crop progress, which are significant price drivers.

The prediction for drier weather in the southern and central regions has also added to the anxieties. 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 states like Maharashtra, Tamil Nadu (NS: TNNP), Andhra Pradesh, and Telangana. When compared to the same period in the previous year, turmeric exports increased by 16.87% from Apr.-Jun. 2022 to 57,775.30 tonnes. El Nio weather is anticipated to reduce September precipitation, resulting in India’s lowest monsoon rains in eight years.

Food inflation may increase as a result, driving up the price of staples like rice, sugar, and vegetables. Seventy percent of the rain required for crop irrigation and watering comes from the monsoon, which is essential to India’s economy. It’s possible that the lack of rain in September may increase the price of necessities and drive up food inflation. The price finished at 14302.6 Rupees, a 2.25 percent decrease, in the important spot market of Nizamabad.

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