MUMBAI (Commodity Online): Turmeric fell along with other spices as overall weak export demand and a weakness in agri commodities prevented any major upside movement.

There have been reports of domestic demand increasing in the mandis but an overall low export demand is preventing any major upside movement.

Fresh arrivals have started. The arrivals are likely to gain momentum in coming weeks. This can pressurize prices in short term.

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There are expectations of farmers switching to this crop this year, as the returns last year had been good. This is expected to improve the crop production aspects.

Reports of low stocks are expected to support prices in medium term. Firmness in Dollar vs Re can provide some support to the export demand. The long-term outlook would depend on the production figures this year.

As per latest reports from the Spice Board of India, Indian exports of Turmeric fell to 40,000 tonnes during April-Dec 2009 from 41,425 tonnes the same period the previous year.

Courtesy: Religare Commodities

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