Growth in Supply at the End of the Harvest Season Caused Turmeric Prices to Drop

Due to a spike in supply signaling the end of the harvesting season, turmeric prices fell 2.1% Wednesday, closing at 17,236 rupees. Farmers withheld stocks in expectation of additional price hikes, therefore the negative effects were mitigated. The country is experiencing a heatwave that might harm crop output, worsening the shortage and increasing prices.

According to the India Meteorological Department’s forecasts for continued hot weather, most of India is expected to see more heatwave days in May than typical. Concerns about agricultural yields are exacerbated by little rainfall in southern India in April, which was much below average.

According to estimates from the Ministry of Agriculture and Farmers’ Welfare, production of turmeric is expected to drop to 10.74 lakh tonnes in 2023–24 from 11.30 lakh tonnes the previous year. Furthermore, as prices increased, demand destruction was noted, which resulted in many people using a hand-to-mouth strategy.

The year-over-year decline in turmeric exports from April to March of 2024 was 4.75%, with a noteworthy uptick in March. On the other hand, imports of turmeric fell by 12.71% over the same time frame, suggesting a decline in the market for imported turmeric. At 18,116 rupees, up 0.43%, turmeric prices concluded higher in Nizamabad, a significant spot market.

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