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Upward Trend Continues in Turmeric Markets - Further Gains Likely

Abhijeet Banerjee
Abhijeet Banerjee
Turmeric
Turmeric Markets

Turmeric market reversed from the bearish phase after May end, as the unlocking of nation’s economy started, resulting in increased household consumption picked and similar trend was noticed in medicinal industry and exports.

Thanks to the efforts of the Aayush Ministry and traditional knowledge about spices being a strong immunity builder, especially turmeric, number of Indians preferring increased consumption of turmeric rose significantly after the second quarter of 2020, and this development has supported local usage till now.

After the Corona pandemic, the need to develop one’s immune system has become all the more important. This would explain demand for turmeric improving significantly after the second half of previous year. Turmeric prices when compared with May levels are currently up nearly Rs.1300 on a quintal.

The commodity has turned out to be a popular ingredient over the years, for those people, who prefer a healthy lifestyle. For centuries this commodity had attracted Indian households as it is used in almost every curry and savory dish, cooked in our home.Haldi/turmeric is often consumed uncooked with milk and warm water or tea, to help combat flu or cold. It helps enhance the immunity and eliminate cold, cough or chest congestions.

According to research published in the journal “PLOS ONE” (Public Library of Science),curcumin, a compound found in turmeric is known to have anti-inflammatory properties enables improving of one’s immunity. Turmeric is antiviral, anti-fungal and anti-bacterial, is also prebiotic that promotes the growth of healthy bacteria in our gut.

Turmeric in recent decadeshas gained further importance owing to presence of curcumin(Known for its anti-inflammatory and anti-bacterial properties). Absorption of curcumin from turmeric is enhanced by 2000 times by peppering, a compound present in black pepper.

The Mandi prices were up from June to August end followed by a temporary reversal as stockists and farmers preferred liquidating most of their stocks, on receiving good returns. The reversal phase continued till November and prices started improving thereafter. After November 2020, the price direction has been upwards till now. As the supply season is still far away, trades are getting materialized without necessary bargains by the buyers, and this keeps the market supported.

Increase in export sales ahead of the Ramazan season, and enhanced use of turmeric as an immunity builder are the other major bullish price drivers. Spot prices are up nearly 25 percent versus May end price levels.  Nizamabad mandi prices are currently averaging near 6200 level and in just 3-4 weeks, Nizamabad turmeric has appreciated by roughly Rs.500/qtl. Trade sources expect spot prices to appreciate by another 5-6 percent in next few weeks under given scenario.

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