Turmeric concluded the trading session with a gain of 1.23%, reaching Rs. 26,762. This increase was bolstered by a resurgence in demand, a decrease in stockist selling, and constrained availability in the spot market. Stockholders are increasingly hesitant to liquidate inventories after previous selling phases, as apprehensions regarding dry weather and the possibility of El Niño conditions have heightened concerns about crop yields in critical agricultural areas. Karnataka’s drought conditions have significantly impacted agricultural production, as evidenced by a joint survey conducted by state departments, which indicates that turmeric crop losses have occurred across 13,446 hectares, amounting to a valuation of Rs. 18,824 lakh.
However, enhanced monsoon activity in Maharashtra, Telangana, and North Karnataka, coupled with improved reservoir levels and the completion of re-sowing in North Karnataka, has alleviated certain concerns regarding crop failures. India’s turmeric production is projected to increase by approximately 15% in 2026, bolstered by an estimated 20% expansion in acreage, especially in Maharashtra. Industry estimates suggest that carry-forward stocks have decreased to approximately 15 lakh bags, down from more than 20 lakh bags in the previous season, resulting in a relatively constrained overall supply buffer.
Demand for IPM-certified turmeric from European buyers is providing additional support; however, stricter European Union maximum residue limits have led to rejections of non-compliant lots and discounts for commercial-grade stocks. In August 2026, India’s turmeric exports experienced a year-on-year decrease of 14%, totalling 14,736 tonnes, down from 17,136 tonnes in the same month of the previous year. However, cumulative exports during April-August rose by 4% to 65,476 tonnes. Shipments to the UAE, Netherlands, and Brazil exhibited robust growth, whereas exports to Bangladesh and Saudi Arabia experienced a decline. In Nizamabad, a significant spot market, prices concluded at Rs. 25,256.20, reflecting a modest increase of 0.05%.
Overall, the dynamics of tight carry-forward stocks coupled with weather-related uncertainties persist in bolstering prices. However, factors such as improved rainfall, acreage expansion, and increased farmer selling could potentially constrain further upward movement. Technically, the market is experiencing new buying activity, as open interest has increased by 1.19% to 18,315 contracts, accompanied by a price rise of Rs. 326. Turmeric is currently experiencing support at Rs. 26,490, with additional support at Rs. 26,220. Resistance is identified at Rs. 27,040; a sustained movement above this threshold may lead to price advancements toward Rs. 27,320.
