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Turmeric prices have stabilized below Rs.14,000 per quintal recently but are expected to rise slightly due to festival demand. Currently ranging between Rs.13,800 and Rs.14,000, prices may see a minor uptick as domestic demand picks up. Export demand has stabilized prices despite a drop in export volumes from 57,557 tonnes last year to 46,497 tonnes this year, with a 44% increase in value per tonne. Concerns about higher production next year, alongside rainfall impacts causing some crop damage, are keeping prices in check. Production this year is estimated to be below 5 lakh tonnes, compared to 7.35 lakh tonnes last year, potentially influencing future price trends.

Key Highlights

* Turmeric prices have stabilized below Rs.14,000 per quintal in recent weeks.

* Festival demand is expected to cause a slight uptick in prices.

* Export demand remains robust despite lower volumes compared to last year.

* Concerns about next year's higher production could cap price increases.

* Current rainfall could impact the crop yield and quality.

Turmeric prices have remained steady below Rs.14,000 per quintal in recent weeks, but a minor increase is anticipated due to forthcoming festival demand. Market participants, including Sunil Patil of Varadlaxmi Trading, expect a slight uptick as domestic demand, which has been lukewarm, is likely to pick up with the approaching festivals. At present, prices are oscillating between Rs.13,800 and Rs.14,000. Historically, demand slackens after May, but localized festival demand may offer some support to prices.

Export demand has played a crucial role in stabilizing turmeric prices. Despite a decline in export volumes from 57,557 tonnes last year to 46,497 tonnes this year, the value per tonne has increased by 44%, helping to maintain price levels. Amrtulal Kataria from Nizamabad notes that while prices had recently fallen to Rs.12,500 per quintal, they have rebounded to Rs.14,000, reflecting resilient market conditions supported by export demand.

Looking ahead, prospects for next year's production could influence current price trends. Traders remain cautious due to expected higher production, with some anticipating a 30% increase. The impact of rainfall on crops in Telangana and Andhra Pradesh is also under scrutiny, as waterlogging has caused around 10% damage in certain areas. However, Nizamabad's Kataria suggests that current rainfall will likely have minimal impact on production, with an estimated production of less than 5 lakh tonnes this year compared to 7.35 lakh tonnes last year.

Finally

Overall, turmeric prices are expected to see a marginal rise due to festival demand, but higher anticipated production and ongoing rain-related issues may limit significant price increases in the near term.

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