Yesterday, the price of turmeric closed higher, rising 1.14% to 18,046 as a result of farmers hanging onto their supply in anticipation of future price increases, which fueled a bullish mood. The good news was offset, though, by higher supplies as the harvesting season came to a close. A threat to agricultural production is posed by the current hot wave in India, which exacerbates the shortage of supply and supports prices further.
According to the India Meteorological Department’s projection, the heat is expected to continue, with more heat wave days than typical in May, which could hurt turmeric production. Turmeric production is expected to drop from 11.30 lakh tonnes to 10.74 lakh tonnes in 2023–24, according to the Ministry of Agriculture and Farmers’ Welfare’s preliminary forecasts.
In addition to the erosion of demand brought on by high costs, this decline has left customers in a precarious condition. However, there is hope in areas that cultivate turmeric, such as Sangli, Basmat, and Hingoli, where there is still a strong demand for high-quality turmeric due to hopes of more seeds this year.
Turmeric exports from April 2023 to March 2024 fell by 4.75% to 162,018.50 tonnes in terms of trade dynamics from the prior year. In contrast to February 2024, there was a noticeable monthly increase in March 2024, suggesting erratic export tendencies. Conversely, imports decreased by 12.71% over the same time frame, indicating a decrease in foreign purchases.
