Weekly Review-Turmeric

13-Jan-2025 11:11 AM

New arrival of turmeric started on Nizamabad line

Market Overview:

  • Turmeric prices have softened during the current week after a brief period of increases due to production losses reported in some regions. The higher prices initially led to decreased demand, prompting a decline in market prices.
  • New arrivals of turmeric have begun in the Nizamabad market, with a steady increase expected in the coming days.
  • As other major producing states like Tamil Nadu, Andhra Pradesh, and Maharashtra will start arrivals by February-March, a significant price increase is not expected in the near future.
  • During the current week, turmeric prices were quoted down by Rs 100-200 in the spot markets. Futures for April were quoted at Rs 15228, with the opening price at Rs 15666, and May futures closed at Rs 15300.

Production Estimates:

  • The sowing area for turmeric in the current season is 30-40% higher than last year across most producing states, but damage to crops has been reported outside Nizamabad.
  • Despite some crop damage, total production is expected to be higher than last year, though it may be lower than the sowing estimates.
  • Production by Region (2025 Estimates):
    • Maharashtra (Marathwada Line): 30-31 lakh bags (up from 24-25 lakh bags last year).
    • Maharashtra (Sangli Line): 9.5-10 lakh bags (up from 7.5-8 lakh bags last year).
    • Nizamabad Line: 12-13 lakh bags (up from 9-9.5 lakh bags last year).
    • Warangal Line: 1-1.25 lakh bags (up from 0.6-0.7 lakh bags last year).
    • Duggirala and Kadapa Line: 2-2.25 lakh bags (down from 2.5-3 lakh bags last year).
    • Erode and Salem Line: 10-10.5 lakh bags (up from 7.5-8 lakh bags last year).
    • Other Areas: Estimated at 3-4 lakh bags.

Previous Years' Production Comparison:

  • 2020: 94-95 lakh bags
  • 2021: 85-90 lakh bags
  • 2022: 78-80 lakh bags
  • 2023: 82-85 lakh bags
  • 2024: Estimated 50-55 lakh bags (a significant decline).

Future Outlook:

  • Sources predict that turmeric prices will increase in 2025 due to weaker availability compared to consumption. An estimated 90-95 lakh bags of turmeric will be available in 2025, while the annual consumption needs are around 108-110 lakh bags (for both local and export markets).

Export Performance:

  • Exports (April-October 2024): 108,879.97 tonnes, a slight increase from 102,162.91 tonnes during the same period in 2023.
  • Export Revenue: A 69% increase in export income, with Rs 1,785.19 crore earned in 2024 (compared to Rs 1,058.04 crore in 2023).

In summary, while turmeric production is expected to be slightly better than last year, the market may experience upward pressure on prices due to lower availability relative to demand, both for domestic consumption and export. The export sector has shown positive growth, further strengthening the outlook for turmeric in 2025.

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