Turmeric futures hit upper limit on tight supply

Persistent buying by speculators led to upper limit

Turmeric prices surged to hit a daily upper limit of four per cent to Rs 4,216 per quintal in futures trade today on persistent buying by speculators, supported by a fall in supplies in the physical market.

At the National Commodity and Derivatives Exchange, turmeric for delivery in June gained Rs 164, or 4.05 per cent, to Rs 4,216 per quintal, with an open interest of 22,070 lots.

The May contract moved up by Rs 156, or 4.04%, to Rs 4,020 per quintal, with an open interest of 17,060 lots. Analysts attributed the continued rise in turmeric prices to persistent buying by speculators on expectations of rise in spot market demand against restricted arrivals from producing belts.