Turmeric prices jumped by 1.37% to close at 18160, driven by farmers hoarding supplies in case prices rise higher amid an impending shortage worsened by the hot wave that is now affecting much of India. The intense heat wave poses a risk to agricultural harvests, further taxing already limited supplies and driving up prices.
Concerns over crop health and productivity are heightened by the India Meteorological Department’s prediction of ongoing heat waves throughout the nation in May. The upward potential for turmeric prices has been limited, though, by profit booking and increased supplies near the end of the harvesting season. Concerns about supplies were exacerbated by the fact that April rainfall in southern India was much less than usual.
Turmeric production decreased in 2023–24 compared to the previous year, according to the Ministry of Agriculture and Farmers’ Welfare’s initial advance estimate, which was attributed to the destruction of demand as prices increased. However, because more sowing areas are anticipated for this year, localities like Sangli, Basmat, and Hingoli are seeing a significant demand for high-quality turmeric.
In terms of exports, during the April–February 2024 period, turmeric exports decreased little from the prior year, but imports decreased significantly, indicating a change in trade. Nonetheless, a month-over-month increase in both imports and exports was observed in February 2024, reflecting erratic trading patterns. Prices in the spot market somewhat increased in Nizamabad, a significant trade hub, reflecting the mood of the market as a whole.
