Weekly Review-Turmeric
05-Apr-2025 07:41 PM
Turmeric prices rise: No possibility of further decline
New Delhi. Turmeric prices rose during the current week. Sources say that the arrivals have started decreasing due to about 65/70 percent of the total production on Erode, Nizamabad and Sangli line reaching the mandis. Apart from this, the arrivals on Marathwada line are also not as expected. Although the sowing area of turmeric was increased at the production centers for the current season, but due to adverse weather and rotting of the crop, the production is not conducive to sowing. Due to which the estimates of turmeric production were continuously decreasing. Earlier production estimates were being made of 90/95 lakh bags, which later came down to 80/85 lakh bags. Currently, production estimates are being made of 70/72 lakh bags.
Low productivity
Currently, the arrival of new turmeric on Marathwada line has started increasing gradually. But due to excessive use of pesticides in the fields on the Marathwada line, the productivity per hectare is coming down. Sources say that usually the productivity of turmeric per hectare on Basmat, Hingoli, Nanded line is 25/30 quintals. But this year, there are reports of productivity coming down to 15/20 quintals. It is worth mentioning that the Marathwada line contributes 40/45 percent to the total turmeric production.
Slow-fast
During the current week, the price of turmeric in the futures and spot markets rose by 10/15 rupees per kg. In the futures market, the price of turmeric for April opened at Rs 13470 and closed at Rs 15100 at the end of the week, while the futures for May opened at Rs 13640, which closed at Rs 15202 at the end of the week. Due to positive news in futures and lack of expected arrivals in mandis, during the current week, prices of turmeric were quoted with a rise of 10/15 rupees per kg in the mandis of production centres as well as consumption centres. Knowledgeable sources say that in the coming days, if there is pressure of arrivals on Marathwada line, then prices may fall by 5/7 rupees per kg. There is no possibility of a more significant decline than this. Because due to less stock at production centres, stockists will start buying at reduced prices. Along with this, farmers will also start holding back the goods. Along with this, arrivals will also remain limited in other mandis except Marathwada. Sources say that in the current prices, a rise of 5/7 rupees is possible in the name of recession and 10/15 rupees for rise.
Production
During the current season, the production of turmeric is estimated to be 28/30 lakh bags on Marathwada line (Hingoli, Basmat, Nanded) of Maharashtra and 9/10 lakh bags on Sangli line. There is a possibility of production of 13/14 lakh bags on Nizamabad line and 1/1.50 lakh bags in Warangal. The production on Duggirala and Kadapa line is estimated to be 2/2.50 lakh bags. Production in Erode, Salem is expected to be 10/11 lakh bags. Production in other areas is estimated to be 4/5 lakh bags. Overall production this year will be 70/72 lakh bags. Whereas last year the production was 50/55 lakh bags.
Low stock
Although during the current season, the production of turmeric is considered to be more than last year, but the outstanding stock has remained less than last year. According to an estimate, the outstanding stock of turmeric last year was 3.5/40 lakh bags, which is believed to be 12/14 lakh bags this year. Due to low stock, the total availability of turmeric during the year 2025 will be less than the consumption. Due to which the prices will start rising as the arrivals in the markets of the producing centers decrease. Trade sources say that the annual consumption of turmeric, including export and local consumption, is around 1/1.10 crore bags. Whereas this year the availability will be 90/92 lakh bags.
Export
According to the data released by the Spices Board, during April-December 2024, turmeric exports were 136921 tonnes and the export income was Rs 2234.57 crore. Whereas during April-December 2023 last year, 121170.98 tonnes of turmeric was exported. And the income received was Rs 1322.36 crore. Thus, while on one hand the export quantity has increased by 13 percent, on the other hand an increase of 69 percent has been recorded in the income.