Turmeric prices have dropped by nearly ₹500 a quintal for finger and bulb varieties over the past 10 days, while the fall has been steeper in the case of premium Rajapuri varieties grown in Maharashtra due to slack domestic demand. 

“Prices have dropped over the past 10 days as demand has slowed. The trade is now treading with caution,” said RKV Ravishankar, President, Erode Turmeric Merchants Association. 

Current price trend

At the Erode agricultural produce marketing committee (APMC) yard in Tamil Nadu, prices of the finger variety turmeric have slid to ₹7,191 a quintal on Friday from ₹7,660 on April 18. Prices of the bulb variety have declined to ₹6,344 from ₹6,743. 

During the same period, Rajapuri variety prices have fallen to ₹8,750 currently from ₹11,275 on April 18 at Sangli APMC yard in Maharashtra. 

On NCDEX, turmeric (farmer polished) ended at ₹8,566 a quintal for May delivery and ₹8,702 for June, down by ₹64 and ₹72 respectively. Prices were at least higher by ₹300 on April 18 in comparison. 

“We are not witnessing any domestic offtake, though export demand seems to be reviving. The movement of turmeric in the domestic market is slow and ample stocks seem to be available now,” said Sunil Patil, proprietor, Varadlaxmi Trading Company, Sangli. 

Further drop on the cards

 “Almost 80 per cent of the current season’s crop has arrived in various markets across the country. Only Hingoli, Basmat and Nanded in Maharashtra seem to have stocks. But demand is low in the domestic market in the cash-and-carry section,” said Amrutlal Kataria, a trader from Nizamabad, Telangana.

“Usually, demand peters out after May 20 every year. This year, it seems to have happened a little early. Prices are likely rule at these levels over the next couple of months,” said Ravishankar.

Patil said turmeric prices could drop further and find their bottom at ₹77-78 a kg against ₹68-70 last year. “Prices are expected to remain subdued until July. Probably, we can see some movement in September when there could be supply shortage,” he said.

Crop loss fears

Turmeric prices surged earlier this year on fears of a lower crop. The trade had raised fears that 20-30 per cent of the crop could have been hit by the unseasonal rains during October-November last year. But, turmeric prices have ruled steady before the current decline. 

According to the first advanced estimate of horticulture crops issued by the Ministry of Agriculture, turmeric production this season to June is estimated to be 11.76 lakh tonnes as against 11.24 lakh tonnes with the area under the crop rising 3.06 lakh hectares from 2.93 lakh hectares.

“Prices are also down since the quality of the turmeric currently available is not good,” Kataria said.

On the export front, demand is expected to revive with Ramadan getting over. “There is a good demand for turmeric from Europe, Gulf and Bangladesh,” he said. 

However, Ravishankar said demand was a tad slow from all sides. 

Patil said the area under turmeric this year could remain stable, though there are chances of some farmers shifting to either soyabean or cotton, which have got growers attractive returns. “But turmeric has also brought in good returns, so there may not be much change in the area,” he said. 

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