Turmeric falls on low demand

On a weak domestic and global markets' demand, coupled with a bumper season next year, turmeric futures dropped by more than 6 per cent against last week's close.

This week, the November and December turmeric futures opened Rs 50 and Rs 82, down at Rs 2,407 and Rs 2,447 respectively on the National Commodity and Derivatives Exchange (NCDEX). This week both the prices further dropped by Rs 117 for the November and Rs 78 for the December turmeric futures.

"This year we are expecting production on the higher side. Bearish sentiments is high in the market at the moment because of good amount of turmeric available," said Sharad Shah, a Sangli-based turmeric trader. However, he added that the prices should stablise at these levels.

According to commodities analysts, major export destinations, the UAE and Bangladesh, are showing a declining in demand. India on an average produces 44-46 lakh bags (each 70 kg) of turmeric in a year. Out of this, three-fourth is domestically consumed and the rest is exported and are kept as carry forward stocks.

However, once the winter sets in, the prices, analysts say, may see the upward move. Punjab and Delhi account for major demand during the winters.