Turmeric ended down for the third straight day on short selling at higher levels weighed by hopes of surge in arrivals in the coming days as market reopened after a week of pongal holidays. Weak demand during the holidays amid expectation of fresh crop arrivals from mid of next month weighed the sentiment. The NCDEX turmeric futures April contract ended the day at Rs 6240, down Rs 130 or 2.01% from last close.
Turmeric swelled 33.65% in the last two months on strong demand against the weak production estimations. As per market sources, turmeric production in 2012-13 is expected around 50-60% lower compared to last year's historical high of 90 lakh bags (1 bag= 70 kgs). This is mainly due to fragile sowing in major producing states such as Andhra Pradesh and Maharashtra. Moreover, dearth of selling by cultivators and strong offtake by investors also propelled strong gains in turmeric market. Most of traders and stockiest are anticipating the hike in Minimum Support Price of turmeric to Rs 10,000 per quintal in 2013 due to higher cultivation cost. Golden Spice or Turmeric is used to flavour and to colour foodstuffs. It is used in cosmetics and in medicines. Turmeric is ready for harvesting in 7-9 months. Sowings start from May end and extend till August whereas arrivals start from February and extend up to May. The market sources said, currently stocks of the spice with higher curcumin level at 5% which is unavailable, thereby supporting prices in the spot markets. Buyers are waiting for fresh crop which will be having more Curcumin content. Despite the projected lower crop estimates, the commodity is expected to move lower in the next months on the back of fresh crop arrivals.
Turmeric swelled 33.65% in the last two months on strong demand against the weak production estimations. The counter was finding resistance at Rs 6950 level and dipped Rs 640 in the last twelve trading sessions to the low of Rs 6220 level, down Rs 728 or 10.47% from last close. April contract ended the day at Rs 6240, down Rs 130 or 2.01% from last close and the open interest dipped 295 tonnes 29,195 tonnes, indicating long liquidations.
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