MUMBAI (Commoditiescontrol) - Spot Turmeric prices during the the week ended Monday (Oct 3-9) was tad down due to lack of encouraging business and subdued cues from futures market. Further export demand for Turmeric was also said to be poor, which has also weighed on market sentiments.
AP Markfed has started Turmeric liquidation programme from October 9, onwards. It has earlier procured around 48,500 metric tonnes of Turmeric under PSS. Markfed is selling Turmeric through e-Auction at Agribazar.
Business activity in Turmeric was mostly subdued since last few months as market is just not reeling under pressure not only due to lackluster domestic demand, but also weighed by liquidity crunch after denometisation and then GST, said traders.
The market has still not recovered from these two move, they said. It will take some more time for trade to get normalize, probably by next year, they added.
The liquidity crunch among buyers has prompted them to procure the commodity in limited quantity or as per immediate requirement, said a trader from Nizamabad.
Usually there is good demand witnessed in Turmeric during September-October period due to festival season in the country, but it was mostly absent this year, he said.
There was lot of uncertainties in the market about price trend, crop outlook, domestic and export demand, which has forced buyers to do need-based buying, he said.
"Uncertainties are not good for the market," he noted.
Export demand too, was not great so far this fiscal as latest commerce ministry data suggests that April-July 2017 Turmeric shipment fell 12.34% to 43,550 metric tonnes versus 49,681 metric tonnes a year ago. Bangladesh, Germany, Morocco, Spain have imported Turmeric in lesser quantity this year during April-July 2017 period.
There is sufficient stocks of Turmeric in the country to cater demand up to new crop supply, expected from February-March. Further the new crop prospects seem better than last year due to good weather in key growing regions.
Turmeric stocks in the country is estimated around 35-37 lakh bags (70kg each).
According to industry experts, Turmeric new crop could be between 70-75 lakh bags against 65 lakh bags a year ago.
On derivatives, the November delivery contracts during the week fell 1.54% to Rs 7,244/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). The contract during the week traded between Rs 7,152 to Rs 7,430.
Sharp fall in Turmeric prices unlikely as prices are around bottom level with limited room for upside due to slow demand. Export demand though at present is dull, but likely to increase from next months.
(By Commoditiescontrol Bureau; +91-22-40015533)
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