Policy change badly impacts turmeric market
The central Indian government’s demonetisation measures had an adverse affect on liquidity in the country’s turmeric market, Olam Spices & Vegetable Ingredients observed.
The company noted in a November 30 report that the major markets remained closed in the last few days due to low arrivals. There are quality issues with the carry-forward stock and these problems include insect damage and dark shading in recent arrivals. Price levels on quality stock increased almost 6-8% in the last 10 days.
In terms of the crop, dry conditions due to lack of monsoon rains and a shortage of better canal water facilities across the growing areas of Tamil Nadu and Karnataka, badly affected the standing crop and yield.
The crop conditions remain better than this in Telanagana, Andhra Pradesh, Orissa and Maharashtra.
Olam Spices noted the domestic demand remains sluggish with hand to mouth coverage only, but export demand is better.
The company predicts that price levels will be tight for the near term. “Overall better crop conditions can keep medium to long term price levels steady to slightly bearish at a maximum of 5-10% from the current price levels,” it added.
The company indicated prices of INR88-92 (USD1.28-1.34) per kilo Cochin delivery in Salem, Erode and Gundalpet; INR84-86/kg in Sangli, Desli and Kadappa; and INR80-85/kg for medium fingers turmeric in Nizamabad.