Turmeric prices firm up on short supply

Turmeric prices have begun to firm up on short supply and an expected decrease in sowing area. The price of the spice had fallen by over 30 per cent from a year ago to Rs 55 per kg last month—a three-year low—forcing farmers to hold back supplies to the market because of lower price realisation.

Traders said that spot prices have now recovered slightly to touch Rs 60 per kg.

“The arrivals have declined by about 50 per cent in the last one month as farmers are reluctant to sell at lower prices,” said Ritesh Kumar Sahu, analyst at Angel Commodities Broking.

Good pre-monsoon showers and prospect of good southwest monsoon rains have kept market sentiments bearish.

“The sowing is about to start in the first week of June and it is expected that acreage may be lower this time due to higher carry-over stocks and lower price realisation during the last season,” Sahu said.

Higher stock at warehouses has kept the futures prices of the spice at NCDEX low. The contract for June delivery stood at Rs 53 per kg on Wednesday evening. Data for April-February 2016-17 showed close to 27 per cent rise in turmeric exports at 97,596 tonnes from a year earlier.

The shipments are expected to exceed the 1 lakh tonnes mark to reach an all-time high.