Weak domestic demand drags turmeric prices lower
Indian turmeric prices continued to decline by around 6-7% in the last two weeks to September 8 on sluggish domestic demand even though export demand remains good, Olam Spices & Vegetable Ingredients reported.
Sowing in Telangana has progressed to around 45,629 hectares against last year’s 39,431 hectares and Andhra Pradesh completed by 10,438 ha. Karnataka and Maharashtra’s sowing is almost over with a primary estimate of 25-30 % better acreage versus last year.
Sowing in Tamil Nadu is still going on and is likely to be over by mid-September
Medium term view
Olam Spices predicts that better sowing conditions with adequate rainfall and soil moisture levels are likely to put pressure on price levels for the short term, but demand is expected at the current price levels or any dips in mid-September onwards.
“Better sowing estimates with current favourable climatic conditions are likely to restrict major upsides,” the company added.
Factors to be watched
- Weather conditions up to November
- Demand and electronic platform activities
Price indications from Olam Spices included medium fingers turmeric in Nizamabad at INR80-84 per kilo (USD1.19-1.25). Turmeric from Sangli, Desi and Kadappa was listed at INR82-86/kg and that from Salem, Erode and Gundelpet at INR87-91/kg.
