Turmeric prices have been moving in a narrow range with a maximum price variation of 1-1.5 per cent owing to higher estimated output. Though speculators have taken positions, traders believe prices would remain depressed throughout the year. |
"This is the arrival season in which prices generally go down. This year also the carryforward stock at 5 lakh bags means higher supply than demand, resulting in a pressure on prices," Akhil Samani, said a trader from Sangli. |
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But, speculators are taking chances on even higher prices on the back of abundant fund shift from other commodities, especially in pulses, Samani said. |
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Farmers and stockists are holding stocks to offload on the eve of new arrivals, which is estimated to take full swing around March 15. |
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Turmeric availability is likely to increase this year at least by 25 per cent to 60 lakh bags (70 kg each) over the last year's output of 45 lakh bags owing to favourable climate, which has resulted in higher production all over the country. |
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The country's turmeric production is estimated between 53 and 56 lakh bags (75 kg each) this year against the total demand of 45 lakh bags. With exports of about 3-3.5 lakh bags, the total carryforward for the next year is expected to rise to 15 lakh bags against the 5 lakh bags last season. |
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According to an estimate, Nizamabad will have the highest quantity of the crop at 14-15 lakh bags (70 kg each). |
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