As per market experts, the estimated production of Turmeric is likely to increase by 9.64% from last year. This year, the crop production is estimated to be about 489 thousand MT compared to the previous 446 thousand MT.
Compared to the regular season’s sowing in Andhra Pradesh, which is about 19,551 hectares, this year, the sowing in Andhra Pradesh (AP) was completed at 15,521 hectares. Last year the state sowed about 16,588 hectares, hence in AP, the sowing is less than the usual average and last year’s quantity. However, the overall production of Turmeric is likely to increase as per the experts.
It has been reported that the crops that have been sowed and are standing are in good quality, and the weather is being favourable for the plants. But as per the experts, the higher production of Turmeric this year can affect the prices, and there can be a slip in the value.
This is mainly due to the lower export demand for the crop. In addition, the travel restriction continues in the South Asian countries due to the increase in the Covid-19 Delta variant, which is affecting the price of Turmeric in the market. Also, the increase in freight cost and crunch in shipping containers are causing the need to have a bearish sentiment for the spice.
On September 27, the turmeric prices fell further for most varieties. For example, Turmeric Finger, Salem Double Polished No.1 fell from $1,15 per kg FOB to $1,14 per kg FOB. Similarly, Turmeric Finger, Nizamabad, Double Polished Dubai decreased to $1,02 per kg FOB from $1,03 per kg FOB. Turmeric Finger Nizamabad, Double Polished Europe variety too had a price drop to $1,06 per kg FOB from $1,07 per kg FOB.
Since the price increase on September 2, there has been a steady fall in the rate of the turmeric varieties. Therefore, the current trend in the market for the crop is becoming a concern for traders and farmers.
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