Turmeric trades up on reports of lower acreage, value buying

Our Bureau Updated - March 12, 2018 at 02:39 PM.

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Turmeric futures traded on a positive note on Friday buoyed by reports of likely lower acreage and low arrivals.

Speculators also indulged in value buying since prices have plunged sharply of late.

On the NCDEX, October contracts ended up Rs 92 at Rs 5,790 a quintal. November and December futures rose by Rs 80 and Rs 22 respectively to Rs 5,780 and Rs 5,800.

The likely fall in output and expectations of a rise in export demand supported prices.

However, sufficient stocks with traders may cap further gains. Of the two major turmeric markets — Nizamabad and Erode — the former is likely to have lower acreage while the latter is set to harvest more.

Rainfall in Nizamabad is 15 per cent lower than the normal as on September 12. Turmeric sowing in Andhra Pradesh was down 18.4 per cent from a year ago at 54,465 hectares. Erode is expected to produce 55 lakh bags of turmeric — a 29 per cent rise compared with last year.

Turmeric production for 2011-12 has been projected at 90 lakh bags (of 70 kg each) compared with 69 lakh bags in 2010-11.

An expected pick-up in demand is supporting prices of the yellow spice. According to the Spices Board of India, exports in April were up 1 per cent at 7,300 tonne.

Spot prices were down and at Nizamabad (Andhra Pradesh), turmeric was quoting at Rs 5,628.5 a quintal. The Erode market was shut in connection with local elections.

Published on September 14, 2012 11:11