Turmeric Futures continued to trade firm on account of improved buying by the market participants and settled at the upper freeze of 4% on Friday. Expectation that the Andhra government might purchase from the stockists also supported prices. Spot prices settled 1.69% higher.
Production, Arrivals and Exports
Arrivals in Nizamabad and Erode mandi stood at 4,000 bags and 12,000 bags respectively on Friday.
Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010- 11. Erode is expected to produce 45 lakh bags of turmeric a rise of 29% as compared to previous year.
According to Spices Board of India, exports of Turmeric during April 2011- November 2011 stood at 58,000 tonnes as compared to 35500 tonnes in 2010-11, rise of 56%. Targets set by the Spices Board have already been met till October 2011. Exports are expected to touch new historical levels in 2011-12.
Outlook
Turmeric prices in the intraday are expected to remain firm due improved buying by the market participants.
In the medium to long term (February last week onwards to April 2012) prices are expected to witness selling pressure owing to fresh arrivals from the domestic market.
Courtesy: Angel Commodities
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