Turmeric Supply Dries Up in India

The turmeric market in India is experiencing a significant supply crunch, with stocks in key regions like Erode and Warangal drying up. Futures contracts are also delayed as physical markets fail to meet delivery demands. With supplies dwindling, prices have risen to USD 1,64–1,65 per kg, making it an ideal time for traders to consider buying before prices increase further.

Why are turmeric prices fluctuating so much? The influence of computerized trading has led to unexpected price drops even amid lower production. Last week, turmeric was priced at USD 1,60 per kg, but it has since recovered, with projections showing a potential rise to USD 1,71–1,73 per kg in 2024.

Old Stock Depletion and Limited Sowing

For years, old turmeric stock kept the market steady, but those reserves are now nearly exhausted. Only the 2023 and 2024 harvests remain available, leaving very little to meet current demand. Compounding the issue, farmers in regions like Sangli and Nizamabad have reduced turmeric sowing, favoring maize and vegetables instead. This shift ensures that the upcoming crop will be smaller, further tightening supplies.

The arrival of fresh turmeric isn’t expected until April 2024, leaving a significant gap in supply. Adding to this, El Niño-related weather issues have negatively impacted production across both North and South India. These delays, combined with high international demand, are creating additional upward pressure on prices.

Price Predictions: Will Turmeric Hit New Highs by January?

With supply chains tightening and demand remaining strong, turmeric prices are projected to rise steadily. Currently at USD 1,64 per kg, prices are likely to reach USD 1,86 per kg by January 31, 2024. This creates a window of opportunity for buyers to secure stocks before the market moves higher.

Traders Take Note: The Turmeric Market’s Next Big Move

The turmeric market is grappling with low supplies, delayed new crops, and rising demand. These conditions point to continued price growth, making it a strategic time for traders and stakeholders to act. With the potential for further price hikes, staying informed about market dynamics is key.





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