Turmeric climbs 2% on strong demand

Decline in area under cultivation, low rains influence prices

Turmeric futures prices today surged Rs 112 to Rs 5,648 per quintal as speculators enlarged their positions amid a decline in the area under cultivation and lower rain in the growing regions.

The futures prices fell on profit-taking after the spice reported sharp gains in July, but expectations of a decline in the area under cultivation and lower rains in the main growing regions were seen supporting the prices at lower levels.

Fall in arrivals from producing regions supported the uptrend.

At the National Commodity and Derivatives Exchange, turmeric for delivery in August surged by Rs 112, or 2.02%, to Rs 5,648 per quintal, with an open interest of 4,690 lots.

The September contract gained Rs 90, or 1.53%, to Rs 5,960 per quintal in 22,120 lots.

Analysts said the rise in turmeric futures was due to fresh positions created by speculators on expectations of a fall in the area under cultivation and deficient rains in main growing areas.

Meanwhile, turmeric prices at futures trade have gone up by over 40% in July.