Monday, October 6, 2008

Turmeric Futures To Continue Pessimistic - Oct 6, 2008

Mumbai: The downtrend in turmeric futures in NCDEX is hoped to continue in the short term on weak sentiment in the spot market besides a slowdown in demand from overseas market. Markets took a cue from dismal production predictions due to scanty rainfall in the initial crop season. Area under turmeric cultivation in the kharif season is hoped to be about 1.69 lakh hectares against 1.64 lakh hectares registered in the same period last year. In Andhra Pradesh, most of the farmers shifted from turmeric to soyabean as it is a short duration crop and less labour-intensive. Moreover, domestic purchasers have been staying away from the market in anticipation of further fall in prices.

The decline in rates was further supported by favourable weather conditions in Andhra Pradesh and Maharashtra, besides a slow down in domestic and overseas demand. In Nizamabad markets, turmeric prices reached a high of Rs 4,600 a quintal, but came down to Rs 3,900 level on Oct 3.

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