Prices rose below normal supplies, causing turmeric to drop on profit booking

Due to profit booking, turmeric prices saw a minor decrease of -0.6% yesterday, ending a period of upward bias driven by below-normal supply and strong festive demand. Yesterday’s closing price was 17544. The slower arrival pace than the previous year is indicative of lesser production, which may encourage stockists to purchase turmeric at every price drop due to current supply constraints.

Due to festive spending, turmeric’s seasonality usually sees price increases in March. However, demand is anticipated to be strong given the upcoming festivals and the start of the wedding season. Nevertheless, a 14% annual decline in production is anticipated as a result of a decrease in the cultivated area for turmeric and falling yields, which are predicted to be between 9.2 and 9.5 lakh tonnes.

Turmeric exports from April to January 2024 decreased by 3.52% from the same period the previous year to 131,662.92 tonnes, despite decreased domestic production. On the other hand, imports of turmeric fell by 22.34% over the same time frame, suggesting a decrease in overseas purchases.

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