The price recovery in the spice was very marginal, Olam Spices & Vegetable Ingredients noted.
The company explained in its latest market report that Indian turmeric sowing in Telangana progressed to about 45,633 hectares (40,830 ha last year during the same period) and Andhra Pradesh completed 14,304 ha (15,405 ha).
Turmeric sowing in Karnataka and Maharashtra is almost over and the area is expected to be 15-20% more than that of last year.
Sowing in Tamil Nadu is almost over and low rainfall is likely to weigh on crop prospects.
Medium term view
Olam Spices feels that reduced availability of quality stock and expected domestic buying for festival demand give marginal support to the current price level. “However, better sowing and crop prospects, with favourable climatic conditions are likely to restrict major upsides,” it warned.
The company listed Salem, Erode, and Gundelpet turmeric at INR85-89 (USD1.27-1.33) per kilo; Sangli, Desi and Kadappa material at INR82-85/kg; and Nizamabad medium turmeric fingers at INR82-84/kg. Each of these price indications is on the basis of Cochin delivery.
Factors to watch
- Weather conditions up to November
Domestic and export demand and electronic platform activities