The Hindu Business Line : ‘Turmeric prices may not witness sharp fall’

Coimbatore, Nov. 1 Turmeric prices, which have declined this year compared with last year’s rates, are unlikely to witness any major fall further, according to trade sources. The prices are expected to hover around Rs 2350 a quintal.

The fall in prices may affect the crop’s acreage next year. Trade sources expect the area to drop 20 to 25 per cent with growers shifting to other short duration and low investment crops such as maize and sunflower.

Observers perceive a 25 per cent fall in the all-India production including a 35 to 40 per cent drop in the Erode turmeric belt.

Carryover stocks

The production drop coupled with expectations of huge carry forward stock to the next year would keep the prices subdued, said trade sources.

According to market data, the carry forward stock at the beginning of next year, given the current annual consumption level of 46-48 lakh bags, would be 13 lakh bags, double the opening stock of 6 lakh bags this year. “This huge inventory would offset the production drop next year,” the sources said, adding that the consumption had more or less stagnated around the same level for years.

Exports showed a rise of 10 per cent compared with the previous year.

Market sources, while stressing the need for a Turmeric Research Centre to explore the other use of this multi-purpose tuber, expect no significant change in crop prospects till 2009.