Turmeric futures prices hit 11-month high

Turmeric futures surged to 11 month-high on Wednesday on fear of deficient rains in the turmeric growing regions in the country. Moreover, the expectation of improving demand from the industrial and upcountry buyers coupled with diminishing supplies in the physical market and expectation of lower acreage support surge in turmeric prices.

The benchmark turmeric contract for August delivery on the National Commodities and Derivative Exchange ( NCDEX) went up by 8.6% to trade at Rs. 7,500 per quintal during the current week in three trading sessions. This will be sixth consecutive weekly increase if it closed higher. The contract has surged over 34 per cent in six weeks.

According to India Meteorological Department (IMD), rain over turmeric growing regions in Telangana, Tamilnadu, Karnataka and Maharashtra during the first 40 days of the four-month south-west monsoon has been below normal, which may have an adverse impact on the standing turmeric crops.

"The trend looks higher on the hope that there will be erratic monsoon over turmeric growing regions which may affect yield and production. Moreover, the anticipation of lower acreage in Tamilnadu, Karnataka and Maharashtra due to the lower realisation of prices during last season may also support prices,” said Ritesh Kumar Sahu, fundamental analysts, agri commodities, Angel Commodities Broking.