YELLOW SPICE EXTENDS LOSS ON STRONG ARRIVALS
DATE: 26/04/2012
Indian Yellow spice futures extended the losses on strong arrivals in the spot market from the bounty crop this year. As per the latest release from the Tamil Nadu Agricultural University, it is expected that last year stock and this year production accounts to nearly 1 crore bags (75 kg/bag).
India's domestic consumption and export demand requires 65-75 lakh bags. As the supply is above domestic and export demand, the price started declining. So far, only 25 per cent of turmeric has arrived in the market. Currently turmeric from Dharmapuri, Attur, Mysore are arriving in the market.
Turmeric from Coimbatore, Kodumudi, Sivagiri and Erode will be arriving from next month. Turmeric arrivals will start increasing in major markets in India (Nizamabad, Duggirala, Sangli, Salem and Erode). But in the months of April, May procurement by the North Indian merchants is very less. However turmeric traders buy to stock turmeric.
So turmeric price will not go down below Rs.3000 per quintal in the months of April, May. The Agricultural University has analyzed the situation in the turmeric market and suggested the farmers reduce the area under turmeric cultivation in the coming season, to control the further price decline due to strong over supply in the market.
The NCDEX turmeric for the May delivery was quoting lower at Rs 3582, down by Rs 50 or 1.38% over the last close. The counter moved in the range of Rs 3634-3540 per quintal and the open interest added 4.05% to 32,350 tonnes, indicating short selling. The volume traded as of now stood at 5,450 tonnes.
POWERED BY: COMMODITY INSIGHTS
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