Due to strong demand from the domestic and international markets, turmeric prices yesterday finished higher by 2.48% at 15940. The decreased sowing acreage and smaller ending stocks are also causing farmers and stockists to hang onto their supplies in anticipation of price hikes, which is causing a supply deficit in the cash markets. During this season, less acres are anticipated to be sown in Kharif. The expected drop in Maharashtra’s sowing area is between 10% and 20%.
The acreage is anticipated to drop by 10% to 15% in Tamil Nadu (NS: TNNP). There is a predicted 18%-22% decrease in acreage in Andhra Pradesh and Telangana compared to the previous season. Support was also noted because the late rains in Andhra Pradesh devastated the farmers’ turmeric crops, resulting in significant losses. The amount of turmeric shipped from April through May 2023 increased by 27.55 percent to 39,418.73 tonnes from 30,903.38 tonnes exported from April through May 2022.
Around 19,827.86 tonnes of turmeric were exported in May 2023 compared to 19,590.87 tonnes in April 2023, an increase of 1.21%. Around 19,827.86 tonnes of turmeric were exported in May 2023 compared to 17,138.35 tonnes in May 2022, an increase of 15.69%. The price finished at 14066.75 Rupees, up 295.7 Rupees, at Nizamabad, a significant spot market in AP.
Technically, the market is under short covering as open interest has decreased by -19.56% to settle at while prices are up 386 rupees. Currently, turmeric is getting support at 15410 and a move below could result in a test of the 14878 levels. Meanwhile, resistance is now likely to be seen at 16264, and a move above could result in prices testing 16586.
