Turmeric Likely To Spurt Further On Strong Fundamentals

Turmeric futures extended the gains for the third day on the back of strong buying support lead by strong fundamentals. Turmeric exports are up by 1% to 7,300 tonnes during April 2012 while value is down 52% to 4,124.50 Lakh.

Traders mentioned that fragile sowing progress in major producing states such as Andhra Pradesh, Maharashtra and Karnataka prompted strong gains in turmeric market. The total sowing acreage of these states are likely to decline by almost 40-50% due to poor rainfall situation.

Therefore, traders are expecting the total production in the range of 45-50 lakh bags in the current year against 80-82 lakh bags that was reported last year. Moreover, strong demand of stockiest and exporters at lower levels also added strong gains in turmeric market.

Currently, most of the traders and stockiest are busy in procuring the turmeric from physical market as prices were shrugged off by almost 50% in the last one year on the account of bumper production in the last year.

 [News Via ]

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