Turmeric prices surge on thin arrivals

Spot turmeric prices opened 25 per cent higher this season owing to non-availability of old stock and thin arrivals from major producing centres in Maharashtra.

Turmeric is presently sold in the range of Rs 2,600-2,800 per quintal.

The new turmeric sold, today, with 4 per cent moisture content, is priced higher this season, according to Satish Attal, vice president, Shri Halad Vyapari Association, Sangli.

The Rajapuriselam variety is quoted between Rs 3200 and Rs 3800 per quintal while the kadappa (local) variety is sold for Rs 2600-2800 per quintal.

Old stocks have depleted completely. Therefore, the traders are totally dependant on new stocks.

Arrivals have already started in small quantities from Nizamabad and other centres which may go full swing by the first week of March.

Turmeric prices have surged by Rs 100 per quintal in the past week and are expected to perk up by Rs 150 per quintal this week, Attal said.

Surprisingly, last year's produce was quoted lower despite 4 per cent moisture content in the new variety. The new turmeric season which starts from January 25, peaks only in March.

The crop is good this year and therefore, the total turmeric production of the country is estimated to go up sharply to 47 lakh bags (1 bag = 80 kgs) as against 42 lakh bags last year. India exports about 4 lakh bags per year.

Turmeric futures are lower this season. April futures are quoted at Rs 2,150 per quintal as the supply is expected to increase, thereby, affecting prices. Still, a price decline of Rs 600 - Rs 700 per quintal looks impossible.

Surprisingly, futures of April, May and June contracts are trading at the same price level.

Amrutilal Kataria of Amrutlal and Co, Nizamabad, is off the opinion that the spot and futures prices of turmeric would decline with the gradual spurt in arrivals.

Last week, Nizamabad witnessed an arrival of 1500 lakh bags per day which shot up to 3,000-4,000 bags per day this week. Arrivals are expected to double next week. Thus, in the third week of February or the first week of March, arrivals would surge to 10,000 - 15,000 bags per day.

The Nizamabad market is estimated to receive 16 lakh bags this year as against 11 lakh bags last year owing to bumper crop in and around the city.

Finger variety of turmeric is sold at Rs 2,200 in loose while the same is quoted at Rs 2000 in bulk, with a moisture content of 20-25 per cent.

"April futures may decline further to Rs 1800-1900 per quintal as traders are selling stocks rapidly. A 40 per cent price decline may induce us to build stocks," Kataria said.