Informist, Thursday, Jul 13, 2023
By Afra Abubacker
MUMBAI – Futures contracts of turmeric hit a 13-year high on the National Commodity and Derivatives Exchange today due to firm export demand and concern over lower production. Coriander and jeera futures fell on the domestic bourse due to subdued demand at prevailing price levels.
The most-active August contract of TURMERIC was at 10,872 rupees per 100 kg, up 3% from the previous close. Earlier in the day, the contract hit a 13-year high of 11,506 rupees. Prices in the key wholesale market of Nizamabad in Telangana rose by 300-500 rupees to 9,700-10,000 rupees per 100 kg, said traders.
Firm export demand and lower availability of premium quality produce are aiding the uptrend in turmeric prices, said traders. In 2022-23 (Apr-Mar), turmeric exports rose 11% to 170,085 tn, data from the Spices Board of India showed.
Concern about lower acreage so far this year due to delayed monsoon onset and shift to other kharif crops are also supporting the prices. According to SMC Global Securities, turmeric acreage is estimated to fall by 10-15% on year.
However, the rising turmeric prices are expected to prompt farmers to increase the area under turmeric, which is likely to put pressure on prices, said SMC Global.
“Even as the trend stays positive, corrective dips to 10,630-10,520 rupees or even more to 10,380 rupees may not be ruled out,” said Geojit Financial Services.
The most-active August contract of JEERA was at 57,480 rupees per 100 kg, down 3% from the previous close. On Tuesday, the contract hit a record high of 60,450 rupees. Prices in the key wholesale maket of Unjha, Gujarat were down by 1,100 rupees at 58,850 rupees per 100 kg, said traders.
Jeera prices fell today on subdued demand at higher prices. Expectations of higher arrivals in the coming days due to favourable weather conditions in Gujarat also weighed on prices. However, tight supply owing to lower production in Gujarat and Rajasthan are likely to limit the fall in prices, said SMC Global.
The most-active August contract of CORIANDER was at 6,900 rupees per 100 kg, down 1% from the previous close. Expectation of increased arrivals in the coming days due to higher production in Gujarat and Rajasthan weighed on coriander prices.
Farmers of both the states had shifted to coriander in rabi season due to favourable weather and expectation of lucrative returns. In April 2022, coriander fetched a price of 13,000 rupees per 100 kg, a seven-year high.
Following are today’s closing prices of the most-active contracts of spices:
End
Edited by Akul Nishant Akhoury
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