Turmeric prices, which have fallen by more than 20% since reaching a record high in May of this year, are expected to rise during the festival season due to low stocks with stakeholders.

Tradologie.com is a user-friendly SaaS global trade hub and your streamlined solution for B2B spice procurement and sales. Connect with global bulk turmeric buyers or turmeric exporter, bypass middlemen for higher profits, and secure the best bulk prices effortlessly. Simplify your spice sales or procurement with Tradologie.com.

Turmeric Stocks

Ankit Agarwal, Director at the Erode-based Amar Agarwal Food India Pvt Ltd, mentioned, “There could be stocks of around 50 lakh bags (55 kg each) in the country. Six months are left before the new crop can arrive in the market. It could be a hand-to-mouth situation leading to another rally in the price.” 

According to Biplab Sarma, Senior Research Analyst at AgriWatch, “AgriWatch anticipates a rise in prices due to lower 2024 ending stocks, which is expected to impact the stock-to-use ratio, decreasing from 10.49% in 2023 to 5.83% in 2024.”

According to Anu V Pai, Commodity Research Analyst at Geojit Financial Services, “producers are reportedly holding stocks in expectation of fetching higher prices, which could lend support along with upcoming festival demand.”

Turmeric Pricing

On the NCDEX, October futures for turmeric are currently trading at ₹16,446 per quintal, while spot prices in Nizamabad are quoting at ₹16,161.  

Prices for the yellow spice were supported by concerns that, despite increased acreage last year, production could decline due to unfavorable weather. According to Pai, in May 2024, they reached an all-time high on NCDEX of ₹20,430/quintal. In 2024, the price of turmeric on NCDEX has increased by over 15%.

Sarma stated that turmeric arrivals in spot markets will decrease in the coming days. Pai stated that the signals for the immediate future are mixed. 

According to Agarwal, prices are currently stable because demand is typically low during the months of June and August. 

“Prices went up too high too quickly. It led to demand contraction. Good monsoon, especially in Maharashtra, played a role in stabilizing the market,” he said. 

Higher Acreage

There is a shortage of stocks because of lower production this year, according to Sarma, even though the area planted to yellow spice crop is higher and new arrivals are anticipated next year. 

Pai stated that there was a 20% year-over-year decrease in turmeric exports in April and May, citing the Spices Board.

Agarwal stated that as the price of turmeric increased, exports decreased, “But next year, in addition to normal demand, we will need stocks for exports because demand is expected to pick-up. As of now, it is a hand-to-mouth situation.”

The Amar Agarwal Foods director predicted that turmeric prices would rise following Ganesh Chathurthi.

 "With prices remaining high, (turmeric) acreage is expected to increase in the major growing states—Telangana, Maharashtra, Andhra Pradesh, and Tamil Nadu," said Pai. 

According to Sarma, the nation's sowing of turmeric has finished as planned. “In Maharashtra, the area under turmeric has increased by 30–35% compared to the previous year. Overall, all-India acreage could go up by 20-25% compared with the last year,” said the AgriWatch Senior Research Analyst.

According to Agarwal, at first, estimates suggested that the area might be 60–100% higher. “But high prices for seeds and lack of quality planting material played spoilsport. Overall, the area under turmeric this year could be 30–40% higher,” he said. 

But according to Pai, the results will mostly depend on how the monsoon plays out in the main states where turmeric is grown, as well as the climate in the later stages of cultivation. 

If you are a turmeric importer wishing to import turmeric in bulk or a turmeric exporter willing to export bulk turmeric, then Tradologie.com is the right platform for you.
 

Tradologie.com facilitates bulk agro-commodity sales and procurement across the globe. Through tradologie.com’s interface, buyers can avail the best qualities of agro-commodities in bulk at negotiable rates.

The transaction oriented platform has 700,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 100 countries.

To register as a buyer, click here. To register as a seller, click here. 

To stay updated with the latest happenings in the agro-trade industry, follow

Tradologie.com across all social media channels.