Prices of turmeric have been under stress in the near-term as a consequence of higher arrivals in the terminal markets and lower exports. On the other hand, the fundamentals support a strong market based on reports that turmeric production in Tamil Nadu, Telengana and Andhra would be lower than last season.
NCDEX Turmeric’s spot prices on Monday evening closed lower at Rs 7675 per quintal. The prices touched a record peak of Rs 16350 per quintal in Nov 2010 and touched a low of Rs 3360 per quintal in 2012. However, turmeric futures likely to trade sideways to lower on account of weak physical demand and higher supplies. The export of turmeric is down by 17 percent to 63,395 tonne for the first seven month of the fiscal 2017-18 compared to last years’ exports.
India is the major producer of turmeric with more than 75 percent of the global production and demand for the commodity has been on rapid increase from the medicinal and cosmetic industry. Turmeric global demand increased whereby exports picked up to 116,500 tonne in volume and Rs.1241 crore in value terms in 2016 – 17.