With arrival outpacing demand since the beginning of this month, the turmeric market is reeling under continuous bearish sentiments. Sources said arrival of the commodity would increase in the coming days and a further southward movement of the prices was on the cards. | |
| Since the start of this month, the contract for May delivery dipped by 5 per cent to Rs 2,200 a quintal from Rs 2,340 a quintal. On the spot market, prices fell by 4.65 per cent to Rs 1,950-2,050 a quintal from Rs 2,050-2,150 a quintal. |
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| "The market will remain weak now and we expect another fall in the next one month," said Milan Shah, a Sangli-based trader. |
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| According to the sources, there was a lull in the demand for turmeric from north India. A month ago, AP Markfed (Andhra Pradesh) promised better prices for the crop. Though it led to a short-term push in prices, the trend did not sustain. |
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| On the production front, the country is expecting 51 lakh bags (each of 75-85 kg) this year. |
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| Despite a cut in estimates, the output is still on the higher side compared with 45-46 lakh bags last year. Traders said stockists were not entering the market, fearing less profit. |
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| Country exports around 10 per cent of its total turmeric production to the Gulf, Europe and Japan. According to the traders, the export demand had not yet picked up. Adding fuel to the fire is the rupee appreciation which, they said, was affecting the market. |
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