Further fall in Turmeric rates was observed last week as higher arrivals amidst lack of demand in the mandis pressurized the market rates for the commodity. Traders however are hopeful of demand rising in coming weeks and that could lend support to the falling prices. Export demand from Gulf countries supported the prices to some extent. Trend likely to remain volatile as traders expect rates have fallen to significantly low levels and expect demand to pick up in coming weeks. Low stock levels are supporting the prices to some extent. But arrival of new crop in coming weeks could have some bearish impact on the market sentiments. Good rains in the growing areas of AP and Karnataka raised possibilities of a better crop this year. With sowing area in these 2 states expected to rise, it can pressurize the prices to some extent. Traders expect production to range between 65-70 lakh bags vs ~48 lakh bags last year (1 bag = 70-75 kg). |
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