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Turmeric hits 5-year high on crop damage
February 16, 2021
Speculation also suspected behind the price surge
Turmeric prices have surged to a five-year high amid crop damage concerns and demand prospects. From February 1, April futures have increased nearly 25 per cent to ₹7,990 a quintal on NCDEX. Spot prices have moved up 19 per cent in Nizamabad, Andhra Pradesh, with modal prices (rates at which most trades take place) to ₹6,750 a quintal on Monday.
Quality turmeric fetched as much as ₹7,911 a quintal in Nizamabad.
Crop projection
Trader sources attributed the rise in prices to factors such as crop damage in growing regions, but they also suspected speculative factors pushing up prices. Turmeric crop for the year was projected to be around 98 lakh bags (each of 60 kg) but rains during October 2020 caused flooding and higher moisture leading to 10-15 per cent of the crops Telangana, Karnataka and parts of Maharashtra being affected. Arrivals have started in key markets