High domestic and export demand, coupled with fears of lower output, have fuelled turmeric prices. Turmeric futures on NCDEX have jumped by over 10 per cent over the last month. April Futures quoted at ₹6,550 on Friday after hitting a high of ₹6,620.
The prices are about 9 per cent higher when compared with the same period last year.
Analysts expect turmeric prices to stay firm on strong demand, both locally and in the export market. Speaking to Businessline, Ajay Kedia, Director at Kedia Commodity, said crop quality concerns and sharp surge in demand have fuelled a rally in the yellow spice.
“Due to climatic adversities and poor quality, turmeric growers are looking at lower yields. Area under turmeric cultivationwas expected to go up, but that did not happen, and prices are firming up on the back of strong domestic and export demand,” said Kedia.
Surge in consumption
Turmeric consumption had surged during the whole of 2020 as people resorted to it an immunity booster against Covid-19. “We believe that ahead of the Ramadan month in April, demand will remain strong for turmeric. This will keep prices above ₹6,500 in the short term,” added Kedia.
Another analyst from Geojit Financial Services said the spot demand, coupled with quality issues of high moisture content led to a surge in turmeric prices. “Turmeric prices may stay high above ₹6,200 a quintal,” said the analyst.
However, other spice commodities, including coriander and cumin seed (jeera) too saw firm trends in the futures trade. Prices of jeera and coriander have gained by 7 per cent and 6.13 per cent in the past one month respectively.
“There is no carry over stock in coriander. The trade is almost hand-to-mouth and the pipeline is empty. Also, the sowing area hasn’t increased in key-growing regions of Gujarat, which has triggered a rally in both jeer and coriander,” said Kedia.
NCDEX Jeera Futures for March expiry quoted at ₹13,400 a quintal, which is about 6.9 per cent up in last one month, but about 4.5 per cent lower than seen in the same period last year.
Similarly, NCDEX coriander (dhaniya) futures for April expiry quoted at ₹6,198 a quintal up, 6.13 per cent over past month, but about 4.8 per cent lower than same period last year.
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