Poor demand to reduce turmeric prices by Rs 1,000/q

KOCHI: Traders say a sluggish demand and the lack of investor interest will pull down the spot turmeric prices by another Rs 1,000 per quintal in the coming weeks.

With an increase in supplies, producers were banking on local and international demand. But a weak demand has pushed the prices down to Rs 8,500 to Rs 8,000 per quintal. "Higher supply and low demand will push the prices down by around Rs 1,000 per quintal from the current level," said turmeric trader RK Vishwanathan.

The prices hovered around Rs 10,000 per quintal a few weeks ago and traders expected them to stabilise at Rs 9,000 per quintal as supplies increased. But the low demand has pushed it further down. When prices peaked to an all-time-high of Rs 16,000 per quintal last year, there was an increased interest in turmeric around the Erode belt in Tamil Nadu, the principal turmeric producing area in the country. Production is estimated to be at 65 to 70 lakh bags (each bag of 70 kg) compared to 48 lakh bags in the previous year. "Stockist buying is absent and with a sluggish demand, prices may remain depressed. I expect a 5% to 8% drop in prices," Kunal Shah, head of commodities of broking company Nirmal Bang said.