The National Commodity and Derivatives Exchange (NCDEX) has banned any fresh positions in August contract of turmeric. Only squaring up of existing positions will be allowed, the exchanged said.
Turmeric futures hit the 4% lower circuit at Rs.6,092 a quintal.
Turmeric prices may remain under pressure as traders unwind their buy positions. Demand from stockists remains low as they expect prices to decline.
Turmeric has risen by almost 80% cent in the futures market. Output is estimated to be lower by nearly 20-30% due to deficient rains.
Commodity futures including pepper, jeera, turmeric, edible oil and seeds, chana, cocud and sugar had closed lower on Wednesday as fears of more trading restrictions to be levied by the commodity market regulator, the Forward Markets Commission (FMC).