India: Turmeric Prices Remain Steady At Spot Markets

Before the markets closed for the Diwali festival apart from Kesamudram, the spot market prices for Turmeric varieties were steady. It has been reported that most of the spice markets will be opening the following Monday, i.e., November 8th.

Market Sentiment 

Amidst the good local demand for the spice because of the festivals keeps the prices steady after it experienced an increase last month. However, there is a possibility that the turmeric prices may start faring better after the travel and export restrictions are lifted from the South Asian countries. Currently, the bearish sentiment experienced by the turmeric trading market is due to the lowering of the export demand among the South Asian countries.

Three factors have contributed to the lack of imports from other countries for Indian turmeric, they are:

1. Increase in the freight cost across the region and globally.
2. Shortage of containers in most countries among the exporters and importers
3. Imposition of lockdown in South Asian countries due to the rising cases of COVID-19

It is believed that once the above issues are sorted, and the travel ban is removed, the prices of Indian turmeric will increase.

Price Chart

Turmeric Finger (Salem, Double Polished) (No.1)

Date	Price
November 2	$1,145 per kg FOB
October 25	$1,140 per kg FOB

Turmeric Finger (Nizamabad, Double Polished) (Dubai Quality)

Date	Price
November 2	$1,03 per kg FOB
October 25	$1,02 per kg FOB

 

Turmeric Finger (Nizamabad, Double Polished) (Europe Quality.)

Date	Price
November 2	$1,08 per kg FOB
October 25	$1,07 per kg FOB

The current turmeric prices for all three varieties had the price increase on October 26th. As noticeable from the charts, the price increase recorded between October 25th – November 2nd are not that significant.

Predictions   

The market experts have predicted an increase in the production of turmeric by 9.64 percent this year. Compared to last year’s 446 thousand MT, the production for the market year 2022 will be about 489 thousand MT, which can eventually cap the prices next year.

While this is the overall prediction for India’s turmeric production, there is a decrease in sowing acreage for the spice in Andhra Pradesh compared to last year. Andhra Pradesh has planted 19,955 hectares compared to the previous year’s 20,942 hectares. However, this year’s sowing area is still above the average sowing area in the state, which is about 19,551 hectares.

The production of the crop is expected to be good, and the current cop is also reported to be of good quality due to favorable weather conditions.

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