Turmeric prices increased on the first market day of April after mostly remaining stable during the last month. As per market experts, the price of turmeric is expected to improve further in the coming days.
Factors Influencing The Price
The low crop production and good international demand have already helped the market go up for the commodity. As a result, the local traders and domestic stockers buy the product heavily.
There is increased activity in the market due to the less arrival of the spice in the spot markets. It has been reported that compared to last year, the arrival of turmeric will be 22 percent less in 2022. All the major turmeric spot markets like Erode, Warangal, Duggirala, Sangli, and Nizamabad have reported having less arrival of the bulbs.
The overall production of the spice has been reduced. It is due to the adverse weather it faced during the growing time. In some growing areas, the quality of the blubs also dropped with a decrease in the overall yield.
The old stock of the crop is low, and 90 percent of it is over. Hence, the demand for good old produce is more than the moisture-laden, low-quality new crop.
All these factors are moving the market up as the purchase of the product remains high.
Factors For Low Production
Apart from the infestation, in South India, mainly Andhra Pradesh and Telangana, the farmers have moved towards sowing corn and soybean because these are fetching better prices. In the last 7 to 8 years, the turmeric market experienced a low phase.
The unseasonal rainfall in Telangana is expected to have destroyed the standing crop and its quality.
Reports suggest the production of turmeric in the Warangal and Duggirala line is expected to be down by 30 to 32 percent.
Generally, the production of turmeric is between 950 thousand to 1 million bags; however, this year, it is predicted to be significantly low, ranging between 670 and 680 thousand bags of 100kgs. All these can help the price become bullish in the future.
The current trend is seeing a reasonable price for the quality crop and is expected to increase further. The low yield of turmeric is helping the market to move up, whereas the low-quality crop is also fetching moderate prices.
Turmeric Finger (Salem, Double Polished) (No.1)
|April 7||$1,23 per kg FOB|
|March 21||$1,22 per kg FOB|