India Turmeric to Gain on Rising Demand.

MUMBAI (Commodity Online): Turmeric failed to hold on to the higher levels seen from short covering last few days. Lack of significant demand amidst higher stocks and reports of better crop prospects kept pressure on the market sentiments.

Reports of some export queries have been there. There are anticipations that the rates have fallen a lot over last few weeks and that could enable exports to pick up in coming weeks

Traders expect the trend to remain volatile in the short term as improved production prospects and higher stocks could keep the prices under check to some extent.

Reports of stockists holding onto stocks at these lower levels as they anticipate rates improving in coming days.

Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.

The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acreage from the high rates is stated the reason for the rise in expected production as per traders.

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.

Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan.

Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-Sept 2011 have risen by 46% to 41500 MT in 2011 from 28500 MT in 2010 same period.

Source : commodityonline.com