While prices of food items are increasing, turmeric has given relief. Turmeric prices are falling due to increasing inward in the market. Now the spot price of turmeric has come down to Rs 6600. According to commodity market experts, a new crop of turmeric has started coming in some places. At the same time, stockists are also removing their stock. Due to which the prices have come down. The futures price of November 20 on NCDEX has come to Rs 5698. The same, the futures price on December 18 is Rs 5706. Whereas it was previously estimated that turmeric would gain in November. Last month there was a sharp rise in turmeric.
According to a Marathawada businessman, turmeric prices are currently falling because stockists are liquidating their stock. They are doing liquids because soon its crop is going to come and some places have started coming. Apart from this, if it did not get the right price for the last three-four years, then people are emptying its stock before the next crop of traders comes to the market completely. They believe that a rise of Rs 10 per kg can be seen in a month or two. Talking about futures trading, according to Anuj Gupta, voice president (commodity research), Angel Broking, its price can only see a boom next year and it can show up to 6500 levels.
Why turmeric prices had increased in the past days
Corona had increased sentiment: Turmeric is also used as an immunity booster. In such a situation, due to Corona epidemic, its price was increased because the use of turmeric increased to increase immunity. Apart from this, the lockdown imposed due to Corona epidemic, its consumption increased rapidly after it was removed. Because now hotels, restaurants also started opening. Apart from this, turmeric is exported to Europe, America and Middle East. Exports increased sharply after the lockdown opened, due to which prices rose.
Crop affected due to rain: India is the largest producer, consumer and exporter of turmeric worldwide. Worldwide 11 million tonnes of turmeric is produced annually, of which 80 per cent is in India. After this, 8 percent turmeric is produced in China. The country produced 9,38,955 tonnes of turmeric in 2019-20. Most of the turmeric in the country is in Telangana where the turmeric crop has been affected due to floods. Apart from this, turmeric is produced in Odisha, Tamil Nadu, West Bengal, Karnataka, Assam, Maharashtra and Andhra Pradesh.
Fall in sowing area: In Telangana, turmeric was cultivated in 0.41 lakh hectare in 2020-21, which is much less than last year. Last year, turmeric was cultivated in 0.55 lakh hectare in 2019-20. According to Ajay Kedia, director of Kedia Advisory, the main reason for the decline in turmeric sowing area is not getting the right price. In the last three to four years, due to lack of good price of turmeric, many farmers have shifted to soybean and cotton. A quarter of the turmeric sowing area is in Telangana. These figures have been taken from the website of Professor Jaishankar Telangana State Agricultural University Hyderabad.
In the production of turmeric, farmers have to spend about Rs 1.5 lakh in an acre of field and from it, 22-24 quintal crops are produced. In this case, the break-even price is Rs 7 thousand per quintal. A break-even price means no profit or no loss, such a price. The Andhra Pradesh government has fixed its MSP at Rs 6550 per quintal. According to this, it is understandable why farmers are shifting from this crop. Due to this, the sowing area of turmeric has declined.