Turmeric prices decreased by 1.71%, closing at Rs 21,158, as enhanced monsoon conditions alleviated short-term worries regarding the forthcoming crop and prompted profit-taking at higher price points. Improved rainfall in key producing areas has bolstered expectations for increased Kharif acreage and enhanced production prospects, leading to a more subdued market sentiment. Nevertheless, the downside was constrained owing to reduced market arrivals, restricted spot supplies, and consistent export demand.

Fundamentally, arrivals were estimated at approximately 8,500 bags, a marked decrease from the 18,000 bags recorded in the prior session, primarily attributed to the closure of key markets in Maharashtra. Good rainfall over the past week is anticipated to expedite sowing activities, while appealing prices close to multi-year highs are expected to motivate farmers to broaden cultivation during the current season. Nevertheless, the distribution of rainfall and the potential influence of El Niño are critical determinants for the progression of crop development.

Despite an uptick in sales by farmers during the peak harvest period, the overall supply situation remains structurally constrained due to diminished production levels and a reduction in carry-forward stocks, which are currently estimated at approximately 15 lakh bags, in contrast to over 20 lakh bags from the previous season. Quality concerns, including reports of rhizome rot, have exerted downward pressure on prices in certain markets. Export demand exhibited resilience, even as India’s turmeric exports experienced a slight decline of 1% year-on-year, totalling 18,960 tonnes in May.

Robust shipments to China, Oman, Yemen, and Italy contributed to the overall stability of cumulative exports for April and May. Meanwhile, spot prices in Nizamabad rose by 0.34% to Rs 20,374.7 per quintal. Turmeric experienced a phase of long liquidation, evidenced by a 0.64% decrease in open interest in conjunction with falling prices. Immediate support is positioned at Rs 20,552, with subsequent support at Rs 19,946, while resistance is identified at Rs 21,532. A sustained move above this level could extend gains towards Rs 21,906.