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Turmeric Falls on Profit Booking After Gains from Crop Damage Reports

Published 04-10-2024, 10:28 am
NTMc1
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Turmeric prices settled down by -1.73% at 13,654 due to profit booking, following earlier gains driven by reports of crop damage in Nanded and Hingoli areas due to heavy rains. The total arrivals in the market were lower at 14,915 bags, compared to the previous session’s 16,975 bags, mainly due to a sharp drop in arrivals at Sangli, where only 890 bags were reported against 11,000 bags in the prior session. With five months left before harvesting, a combination of low supply and unfavourable weather conditions is expected to support prices in the coming weeks. However, the upside is limited by news of increased sowing.



In Indonesia, dry weather has accelerated harvesting, and rising acreage, coupled with low export demand, could apply further downward pressure on prices. Turmeric sowing in regions like Erode, Maharashtra, Telangana, and Andhra Pradesh has reportedly increased by 30-35% compared to last year. It is estimated that turmeric acreage has expanded to 3.75-4 lakh hectares this year, up from 3-3.25 lakh hectares in 2023. Despite increased sowing, the production for 2024 is expected to be 70-75 lakh bags, lower than the estimated demand, leading to reduced availability in 2025. Turmeric exports during April-July 2024 dropped by 13.97%, while imports surged by 429.58% in the same period.



Technically, the market is under long liquidation, with open interest declining by 5% to 12,535 contracts as prices fell by 240. Turmeric is currently supported at 13,514, with further support at 13,372. On the upside, resistance is expected at 13,774, and a move above could push prices to 13,892. The market remains sensitive to weather conditions and supply dynamics.

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