Indian turmeric prices soften on slack demand, higher 2021-22 output 

Indian turmeric has pared the gains witnessed after Diwali on slack demand and record production in the 2021-22 crop year (July-June), traders say.

“Turmeric prices had gone up by ₹300-400 a quintal soon after Diwali in markets in Telangana and Maharashtra. But they have now dropped back to pre-Diwali levels as demand is slack. This is because production was higher last year,” said RKV Ravishankar, President, Erode Turmeric Merchants Association. 

NCDEX prices

Modal price (the rate at which most trades take place) of the finger turmeric at the Agricultural Produce Marketing Committee (APMC) yard in Erode had increased from ₹6,641 a quintal before Diwali to ₹7,131 by November 18 before falling to levels of ₹6,700 currently. 

In Sangli APMC yard in Maharashtra, the Rajapur variety’s modal price had topped ₹7,500 a quintal on November 18 before dipping to ₹6,500 currently. On NCDEX, December polished turmeric contracts are currently ruling at ₹7,230.40. Spot prices of Nizamabad polished turmeric, as per NCDEX data, are ₹6,823.55. 

“The production last year was higher resulting in farmers carrying their stocks even now. This is now reflected in the softening of prices,” said Nizamabad-based trader Poonam Chand Gupta.

Unfounded fears

“Fears over crop loss due to unseasonal rains last year have proved unfounded. Farmers in Maharashtra and Nizamabad seem to have stocks,” said another Nizamabad-based trader Amrutlal Kataria. 

According to Ministry of Agriculture data, turmeric production in 2021-22 has been estimated at 13.31 lakh tonnes (lt) compared with 11.76 lt the previous year. A rise in the acreage to 3.5 lakh hectares (lh) from 3.06 lh.

“In areas such as Nanded in Maharashtra, turmeric production increased by 25 per cent last year,” said Gupta. 

“Besides higher production last year, the demand even in December has been subdued. Overall, we are seeing a slack demand,” said Ravishankar. 

Demand for export, on the other hand, has been normal till now. “There has been no great demand for exports. Maybe, we can term it slack now,” said Gupta.

Weather impact

“Exports of late have slowed down. It is impacting the prices,” Ravishankar said. 

Data from the Spices Board showed that turmeric exports during April-August this fiscal were 15 per cent higher at 74,393 tonnes valued at $94.56 million compared with 64,493 tonnes ($87.16 million) a year ago. 

Kataria said the slowdown in export demand could be attributed to fears of a recession in Europe and other western nations. “But we will be able to see the usual 2-5 per cent rise in exports,” he said. 

Ravishankar said the crop this year is reported to be normal with no reports of damage due to heavy rains in States such as Maharashtra. 

“There is a 15 per cent variation in the crop estimate we are getting. We hear that rains during the sowing reason could have resulted in affecting seed maturity in areas such as Sangli,” said Gupta. 

A continuous spell of rain for two weeks starting July 7 during the sowing affected the growth of the plant, he said. 

Kataria said there could be a 5-10 per cent variation in the crop estimate in view of the rains compared with the previous year.  

On NCDEX, the April contract is quoting higher at ₹7,908 a quintal, an indication that the trade is not worried too much over lower production. 

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