Indian turmeric has shown a mixed pricing trend over the two weeks to August 17, Olam Spices & Vegetable Ingredients noted in its latest market report.
The report explained that prices increased marginally in the previous week on low arrivals. “Domestic demand is however, average, which is restricting further upsides,” Olam Spices observed.
The company finds that stock availability is comparatively low compared with last year, which is supporting the current price levels.
Sowing in Karnataka and Maharashtra is almost over with a primary estimate of 25-30% larger area than that of last year. Sowing in Telangana has reached 43,256 hectares versus 36,955 ha at the same time last year and Andhra Pradesh is at 9,150 ha against 6,485 ha previously.
“Demand is expected to recover due to the festival season which could support prices. Also, supplies continue to remain tight, adding to bullish sentiments,” Olam Spices stated.
The company added that prices are expected to show range bound to firm movement for the near term.
Medium term view
Olam Spices feels that domestic demand is likely to improve over the coming days due to the festival season and noted that low carry-in stock is expected to put pressure on the market in the medium term. The market is expected to trade firm on low stocks and steady demand for quality turmeric.
“However, better sowing estimates with current favourable climatic conditions are likely to restrict major upsides,” the company added.
Olam Spices’ price indications ranged from INR90-95 (USD1.33-1.41) per kilo Cochin delivery, depending on the grade being quoted.