Turmeric prices increased as farmers held back supplies

As farmers clung to their stocks in anticipation of future price increases, turmeric prices yesterday jumped by 3.67% to settle at 19,648. Prices are expected to be supported further by the ongoing heatwave in India, which might harm crop production and exacerbate supply shortages.

With more heatwave days predicted for May than normal, the India Meteorological Department’s forecast of persistently hot weather indicates that there is little chance of relief. The gain potential is being capped, though, by profit booking and higher supplies at the end of the harvest season. A substantial decrease in rainfall in April affected crop growth in southern India.

Turmeric production is predicted by the Ministry of Agriculture to be lower in 2023–24 than it was in 2022–21. Furthermore, the price increase has destroyed demand as a result of consumers switching to a hand-to-mouth strategy. Data on imports and exports show changes in trade activity.

Between April and March of 2024, there was a 4.75% decline in turmeric exports and a 12.71% decline in imports. On the other hand, a significant rise in exports was observed in March 2024 as opposed to February 2024, suggesting a possible revival of trade activity.

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