Turmeric rose driven by consistent demand from the domestic market and export.

yesterday settled up by 2.65% at 13152 driven by consistent demand from the domestic market and export. Moreover, farmers and stockists are holding onto their stocks in anticipation of price increases due to lower sowing acreage and also lower ending stocks, resulting in a supply shortage in the cash markets. The kharif sowing acreage is expected to decrease during the current season. In Maharashtra, the sowing area is projected to decline by 10%-20%. Similarly, in Tamil Nadu (NS:), the acreage is expected to decrease by 10%-15%. In Andhra Pradesh and Telangana, there is an anticipated decline of 18%-22% in acreage compared to the previous season. 

Support was also seen as the untimely rains that occurred in various places in Andhra Pradesh damaged turmeric crops causing huge losses to the farmers. Turmeric exports during Apr-May 2023, rose by 27.55 per cent at 39,418.73 tonnes as compared to 30,903.38 tonnes exported during Apr-May 2022. In May 2023 around 19,827.86 tonnes of turmeric was exported as against 19,590.87 tonnes in April 2023 showing a rise of 1.21%. In May 2023 around 19,827.86 tonnes of turmeric was exported as against 17,138.35 tonnes in May 2022 showing a rise of 15.69%. In Nizamabad, a major spot market in AP, the price ended at 11882.8 Rupees and gained 408.45 Rupees.

Technically market is under short covering as the market has witnessed a drop in open interest by -2.08% to settle at while prices are up 340 rupees, now Turmeric is getting support at 12768 and below same could see a test of 12384 levels, and resistance is now likely to be seen at 13534, a move above could see prices testing 13916.