Turmeric Futures rise 10 per cent on MSP expectations

By Krishna Kumar

Turmeric futures traded on the National Commodity and Derivatives Exchange have been rising since last week in anticipation of the declaration of minimum support price (MSP) for the spice by Andhra Pradesh.

The March contract for turmeric settled around rupees 6,750 per quintal, up more than 10 per cent in the past few weeks. Last Friday it had hit the upper circuit of 4 per cent.


Prices have increased at a time when the spice industry is waiting for a fresh harvest in February-March.

“The next crop is expected to be a good one as sowing has increased in Telangana, Andhra Pradesh and Maharashtra because of good rains. The crop in Tamil Nadu has been on the decline in the last few years, averaging around 70,000 tonnes,’’ said RV Ravishanker, president of Erode Turmeric Merchants Association.

“Fixing a high MSP can be counterproductive as it can lead to overexploitation of farmers. Ideally around rupees7,000 per quintal would be better,’’ said Deepak Mazumdar, director, Deepkamal Exports. Turmeric prices have been averaging rupees 6,000-7,000 per quintal in the past three years, he said.

The new crop is expected to be same as last year. As per the Spices Board data, the total crop in 2019 was 929,967 tonnes. India exported turmeric worth more than rupees 1,400 crore last year.

The board had formed a task force for turmeric with its members and representatives of traders, exporters, scientists and farmers to recommend measures for the development of turmeric.

SUPPORTING PRICE

Turmeric prices have been averaging rupees 6,000-7,000 per quintal in past three years.