Monsoon brightens prospect for turmeric, prices soften
With the resurgent monsoon dispelling all doubts about the new crop, prices in the turmeric market that had climbed to a new peak earlier have softened.
By S.Sanandakumar, ET Bureau |
KOCHI: With the resurgent monsoon dispelling all doubts about the new crop, prices in the turmeric market that had climbed to a new peak earlier have softened.
The initial dry spell in the current monsoon season and uncertainty over the crop situation had led to a lower crop estimate of around 4.5 to 5 lakh tones. However, more recent estimate indicates a higher level of production in the coming season.
The turmeric production stood at 8 lakh tones in 2007-08. It fell to around 5 lakh tones in 2008-09. Lower carryover stocks and an expected fall in output in the coming season starting January 2010 due to poor monsoon were the two important reasons for the speculation in the market. Spot prices that stood at around Rs 40 to 50 per kg a year ago shot up to Rs 100 per kg a few weeks back for the Madras finger turmeric.
However, the revival of monsoon rains in the main producing regions like Andhra Pradesh, Tamil Nadu, Maharashthra etc has revived hopes about the crop. The current estimate is that the country might be heading towards a crop of around 6 lakh tones.
This has caused the prices to soften and touch Rs 85 per kg for the week ended September 5 at Erode market. Nizamabad, Erode, Salem Warangal, Sangli etc are some of the main markets of turmeric.
Experts pointed out that the prices are likely to ease further now that the monsoon has become active. "We expect the prices to fall further in the next three to four weeks", a market analyst said. The new crop will hit the market between January and March.
Turmeric accounts for 11 % of the total quantity and 5 % of the value of total spice exports. In 2008-09 the total exports of turmeric stood at 52,500 tonnes while the value of exports stood at Rs 248.58 crore. In the April to July period of the current year the exports stood at 21,000 tonnes valued at Rs 132 crore.
Industry experts pointed out that the higher prices of Indian turmeric had led to better demand for the turmeric from other competing countries like Ethiopia, Vietnam, Indonesia, Burma etc. The main market of Indian turmeric is Asian countries like UAE, Japan, Egypt, Malaysia, Bangladesh etc.
The initial dry spell in the current monsoon season and uncertainty over the crop situation had led to a lower crop estimate of around 4.5 to 5 lakh tones. However, more recent estimate indicates a higher level of production in the coming season.
The turmeric production stood at 8 lakh tones in 2007-08. It fell to around 5 lakh tones in 2008-09. Lower carryover stocks and an expected fall in output in the coming season starting January 2010 due to poor monsoon were the two important reasons for the speculation in the market. Spot prices that stood at around Rs 40 to 50 per kg a year ago shot up to Rs 100 per kg a few weeks back for the Madras finger turmeric.
However, the revival of monsoon rains in the main producing regions like Andhra Pradesh, Tamil Nadu, Maharashthra etc has revived hopes about the crop. The current estimate is that the country might be heading towards a crop of around 6 lakh tones.
This has caused the prices to soften and touch Rs 85 per kg for the week ended September 5 at Erode market. Nizamabad, Erode, Salem Warangal, Sangli etc are some of the main markets of turmeric.
Experts pointed out that the prices are likely to ease further now that the monsoon has become active. "We expect the prices to fall further in the next three to four weeks", a market analyst said. The new crop will hit the market between January and March.
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Turmeric accounts for 11 % of the total quantity and 5 % of the value of total spice exports. In 2008-09 the total exports of turmeric stood at 52,500 tonnes while the value of exports stood at Rs 248.58 crore. In the April to July period of the current year the exports stood at 21,000 tonnes valued at Rs 132 crore.
Industry experts pointed out that the higher prices of Indian turmeric had led to better demand for the turmeric from other competing countries like Ethiopia, Vietnam, Indonesia, Burma etc. The main market of Indian turmeric is Asian countries like UAE, Japan, Egypt, Malaysia, Bangladesh etc.
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