Turmeric Future Witnesses Down Trend

Mumbai: Turmeric futures are on a downtrend in the short term on the backdrop of increase in output of 8.90 lakh tonnes in 2006-07 against 8.5 lt last year. On Oct 18, turmeric for October delivery hit the lower circuit at Rs 1,805 per quintal, while the November delivery was down 1.5 per cent at Rs 1,999. In the last three months, turmeric prices have fallen to the current level from a peak of Rs 2,300 per quintal due to high speculative selling. The high carry forward stocks of about six lakh bags (70 kg) are also pulling down the price. Lack of domestic demand supports bearish trend in near term. Inventories for 2007-08, are hoped to double to over one lakh tonnes. As of now, spot market prices are at Rs 1,980-2,000 levels a quintal.