Indian turmeric showed a marginal price correction of 3-4% during April, with limited trading days and selective buying, according to Olam Spices & Vegetable Ingredients.
The company recalled that markets remains closed during the first half of April, whereas the electronic platform witnessed a downward trend. It noted that adequate supplies with subdued Indian demand of late were keeping prices under temporary pressure.
Arrivals were slowly declining across major origins compared with the previous month.
Olam Spices finds that in Tamil Nadu , due to general elections, the domestic trade is in limited volumes on cash transaction controls and tightness.
The exchange platform is trading lower versus the spot market.
There has been a decline in Indian supplies for three consecutive years, with overall stocking interest and good Indian demand on any price dips set to support turmeric price levels this year, the report noted.
Pre-monsoon rainfall received at isolated growing regions in early May gave partial relief to the severe heatwave, but the southwest monsoon is going to be the decisive factor for this year’s sowing and further price trends beyond June 2016, Olam Spices predicted.
The company feels that a downward price correction is unlikely below the INR80 (USD1.19) per kilo price range during the year.