Informist, Friday, Aug 30, 2024

MUMBAI – Turmeric is going to see a new high due to firm domestic and export demand next year, said Ajay Kedia, director, Kedia Advisory, at the 'Global Turmeric Conference 2024', organised by the NCDEX Institute of Commodity Market and Research today. Owing to limited availability in the global market, prices will bounce back, he said.

Prices of the yellow spice have fallen over 50% from the high of 20,430 rupees per 100 kg touched on May 27 to 13,372 rupees per 100 kg today. Turmeric has fallen in 14 out of 21 sessions in August, due to several reasons such as higher acerage, exports to Bangladesh taking a hit, and profit-taking seen at higher levels.

However, the trend will reverse and prices will be on an uptrend starting November, said Vandana Bharti, head of commodity research, SMC Global Securities. The price of the golden spice is likely to stabilise at around 11,100-10,800 rupees per 100 kg and a fresh uptrend will start from November onwards, she said.

The overall bullish trend is seen in turmeric in the coming days, according to panellists. Farmers haven't got a good rate in the past few years, so replaced turmeric with other crops. Hence, there will not be enough to carry forward, said Bharti.

The downfall will be capped, as the overall production is around 50% less in the past 4-5 years. The arrivals in Sangli, one of the key markets this time, are at a 5-6-year low, said Govardhan Marda, President of the Turmeric Traders Association, Sangli.

Futures prices of turmeric on the National Commodity and Derivatives Exchange hit an all-time high of 20,430 rupees per 100 kg on May 27 on the back of a bleak production outlook and farmers holding back the crop. However, extension of the 2.5?ditional surveillance margin on turmeric contracts till May 23 from Apr 30 by the National Commodity and Derivatives Exchange has led to profit booking and a fall in trade volume that weighed on prices.

The downfall will be limited and prices will be trading in the range of 12,500–13,000 rupees per 100 kg during Sep-Oct. "I think that once again, there will be a rally here from October-November onwards which will continue till March," she said.

Reported by Taniva Singha Roy and Sandeep Sinha

Edited by Deepshikha Bhardwaj

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