Turmeric futures climb over 2 pc on lower rains

NEW DELHI: Turmeric prices went up by over 2 per cent to Rs 6,480 per quintal in futures trade today as participants indulged in creating speculative positions amid reports of slow progress of sowing due to deficient rains.

At the National Commodity and Derivatives Exchange, turmeric for delivery in September traded Rs 128, or 2.02 per cent, higher at Rs 6,440 per quintal, with an open interest of 21,920 lots.

Likewise, the spice for delivery in August traded Rs 120, or 2 per cent, higher at Rs 6,100 per quintal, with an open interest of 2,520 lots.

Analysts said the rise in turmeric futures was mostly due to speculative positions created by participants, driven by reports of a decline in the area under cultivation and lower rains in key growing regions.

Besides, strong overseas demand also influenced turmeric prices at futures trade, they said.

Meanwhile, the total area under cultivation in India, the world's biggest producer and exporter of the yellow spice, is likely to fall 30 per cent this season.

Turmeric is planted between June and August.