Turmeric Prices has fallen by approximately USD 1,69 per kg (1,35%) over the past few days, currently standing at USD 1,69 per kg (Rs 140,24). This decline comes as harvesting begins in major turmeric-producing regions of Karnataka and Andhra Pradesh.

Harvesting and Supply Trends

Farmers in Karnataka and Andhra Pradesh have started harvesting turmeric, while farmers in Telangana plan to begin after Makar Sankranti. Experts believe this year’s production will likely fall below last year’s levels due to unfavorable weather conditions and El Niño's ongoing effects.

New turmeric crops should reach markets before April, increasing supply and likely triggering price changes in the coming months. Traders report a significant drop in supply along the Erode-Warangal line, a major turmeric trade route.

Turmeric Production and Consumption

Last year’s turmeric production was reported at 6,8 to 7 million bags (68-70 lakh bags), while consumption reached 12,8 million bags (128 lakh bags). With old stock nearly exhausted, traders are looking to new harvests to replenish inventory.

At present, turmeric prices remain high in international markets, but a steady domestic production increase is expected. However, due to weather uncertainties, this increase may only be gradual as farmers adapt to shifting conditions.

Strong Export Growth Boosts Demand

India’s turmeric exports continue to show robust growth. Between April and October 2024, shipments rose by 6,57% to 108,879,96 tonnes compared to the same period in 2023. For October 2024 alone, turmeric exports jumped by 57,22% year-on-year, reflecting strong international demand.

The rise in exports has been a key driver of optimism in the turmeric market, providing stability despite fluctuating domestic production levels.

Conclusion: A Balancing Act for Traders

With new harvests expected soon and international demand staying strong, the turmeric market presents a mix of opportunities and risks. Traders should monitor supply trends and export conditions carefully. Holding stock until more clarity emerges may prove beneficial, especially as prices are likely to fluctuate once the new harvest hits the market.





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