Prices for turmeric increased as farmers held back supplies

Withholdings from farmers amid anticipation of additional price increases drove yesterday’s 0.59% gain in turmeric prices, which closed at 17512. The heightened supply near the end of the harvesting season limits upside potential, though. Increased crop yields could worsen the supply shortage and support price levels, as the heat wave currently affecting India poses a serious risk to them.

With below-normal rainfall in southern India compounding the strain on agricultural conditions, the India Meteorological Department’s projection of protracted heat waves shows little sign of relief shortly. Turmeric production is expected to decrease to 10.74 lakh tonnes in 2023–24 from 11.30 lakh tonnes in the previous year, according to the Ministry of Agriculture and Farmers’ Welfare’s forecast.

The market is feeling apprehensive as a result of this fall and the destruction of demand brought on by rising pricing. Anticipations of higher sowing in the current year are fueling strong demand for high-quality turmeric in areas like Sangli, Basmat, and Hingoli. In terms of trade, turmeric exports fell in April 2024 to 14,109.09 tonnes from 17,432.83 tonnes in March 2024 and from 19,590.87 tonnes in April 2023, a more significant dip, suggesting a decrease in demand from outside.

As a result of increased local demand to make up for supply shortages, imports, on the other hand, jumped to 3,588.11 tonnes in April 2024 from 1,227.28 tonnes in March 2024 and 535.29 tonnes in April 2023. Localized pricing dynamics are evident in Nizamabad’s spot market closing price of 17920.1 Rupees, which was -0.15% below previous levels.

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