Turmeric prices increased by 0.4% to close at Rs 16,166, bolstered by limited arrivals in major mandis throughout Maharashtra and Telangana during the peak season. Restricted inflows, coupled with quality concerns such as rhizome rot in low-lying regions, have diminished the supply of premium “Double Polished” export-grade material.

In significant centers like Sangli and Nizamabad, farmers and stockists are withholding supplies, anticipating that prices will trend towards the Rs 18,000 threshold. High-quality “Salem Fali” persists in commanding robust premiums, trading near Rs 20,000 per quintal. Fundamentally, the market maintains its firmness owing to a reduction in carry-forward stocks, currently estimated at approximately 15 lakh bags compared to more than 20 lakh bags in the previous season.

The demand for IPM-certified turmeric from Europe, coupled with consistent purchasing interest from Bangladesh, is bolstering market sentiment. Despite a 19% year-over-year decline in January exports, the overall exports for the period from April to January show a slight increase, suggesting a stable medium-term demand. Imports have experienced a significant decline, indicating a diminished dependence on foreign sources.

From a technical perspective, the market is experiencing renewed buying interest, evidenced by a modest increase in open interest in conjunction with price gains. Immediate support is identified at Rs 15,908, with potential downside towards Rs 15,650 if this level is breached. On the upside, resistance is positioned at Rs 16,332, and a movement beyond this threshold could propel prices towards Rs 16,498.