The spot market prices for Turmeric were down in most of the trading places. This was the second day after the market opened post- Diwali that the prices for Turmeric dropped. The price drop is due to poor demand for the spice and other factors like transport workers’ strikes.
Several spot markets like Duggirala, Sangli, and Warangal experienced a price fall between $1.34 and $2.69 per kg because of poor demand.
Kesamudram market remained closed. Hence no activity took place. The market closure was due to the transport worker strike, which entered the third day on Nov’ 10.
Along with the decrease in the local demand and limited supply of turmeric varieties in the market, there is also very little export demand for the crop. Moreover, factors like travel restrictions due to the COVID-19 continuing in the South Asian countries and increasing freight prices are putting pressure on the spice price. Even shortage of containers for export is causing the prices to move southward for Turmeric.
All these factors have led to the market having a bearish sentiment for the crop, making the traders and farmers panicky.
Turmeric Finger (Salem, Double Polished) (No.1)
|November 10||$1,13 per kg FOB|
|November 8||$1,140 per kg FOB|
|November 3||$1,145 per kg FOB|
Turmeric Finger (Nizamabad, Double Polished) (Dubai Quality)
|November 10||$1,02 per kg FOB|
|November 8||$1,030 per kg FOB|
|November 3||$1,034 per kg FOB|
Turmeric Finger (Nizamabad, Double Polished) (Europe Quality.)
|November 10||$1,70 per kg FOB|
|November 8||$1,083 per kg FOB|
|November 3||$1,089 per kg FOB|
All the varieties of Turmeric experienced consistent price drops since the market opened on November 8 after the Diwali festival. Before that, the market was steady with its price since October 27. However, compared to last month, where the price drop for the crop was only once and with a steady increase, this month has already shaped to become worrisome for the turmeric traders and farmers.
Currently, the NCDEX closed the November price for Turmeric at $97.47 per quintal and December’s price at $99.74 per quintal.
The future price of Turmeric can be capped due to the expected higher production. According to analysts, there will be an increase in crop production in India by 9.64 percent compared to last year.
India produced 446 thousand metric tons for the market year 2020-2021, which is expected to be 489 thousand metric tons for 2021-2022.
This figure is expected for the crop across India, despite Andhra Pradesh decreasing its sowing acreage by 980 hectares. As of October 12, the state sowed 19,955 hectares of Turmeric compared to last year’s 20,942 hectares. However, given the excellent quality of the crop and the favorable weather condition, the production is expected to be higher compared to last year. The higher output of the crop can cause capping of the prices for turmeric varieties in the coming days and next year unless the export demand picks up.
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