NCDEX Turmeric (Haldi)

Contract Specifications of Turmeric

NCDEX Turmeric: Live Prices, Market Overview, and Trading Insights

NCDEX Turmeric refers to turmeric futures traded on the National Commodity & Derivatives Exchange (NCDEX) in India. Turmeric is a key spice with both culinary and medicinal uses, making it one of the most sought-after agricultural commodities in India and internationally. NCDEX Turmeric futures provide farmers, traders, and investors a platform to hedge against price fluctuations or speculate on market movements.

With India being the largest producer and exporter of turmeric, NCDEX Turmeric prices are closely watched by domestic and global stakeholders.

What Are NCDEX Turmeric Futures?

NCDEX Turmeric futures are standardized contracts representing a fixed quantity of turmeric, usually 100 kilograms per contract. Each contract has a defined expiry date, tick size, and lot size, allowing efficient price discovery and risk management for participants.

Key features of NCDEX Turmeric contracts include:

• Contract Size: 100 kg per lot
• Tick Size: ₹1 per kg
• Settlement: Cash settlement or delivery depending on the exchange rules
• Trading Hours: 9:00 AM – 5:00 PM IST

These futures help farmers lock in prices, traders manage inventory risk, and investors gain exposure to one of India’s top agricultural commodities.

Factors Influencing NCDEX Turmeric Prices

1. Production Levels: Seasonal output, rainfall patterns, and acreage under cultivation significantly impact prices.
2. Global Demand: Export demand from countries like the US, Europe, and Middle East affects market sentiment.
3. Government Policies: MSP (Minimum Support Price), export restrictions, and subsidies influence supply-demand balance.
4. Currency Fluctuations: Since turmeric is exported in USD, the strength of the Indian Rupee affects pricing.
5. Weather and Crop Conditions: Unseasonal rainfall, pest attacks, or drought can create short-term volatility.

Trading NCDEX Turmeric Futures

Trading turmeric on NCDEX involves:

• Hedging: Farmers and traders lock in prices for future deliveries to mitigate risk.
• Speculation: Traders anticipate price movements based on seasonal trends, demand-supply analysis, and global market signals.
• Arbitrage: Linking turmeric futures with other spice markets for relative price advantage.

Common trading strategies include:

• Intraday Trading: Leveraging short-term price movements using technical indicators like RSI, MACD, and moving averages.
• Positional Trading: Holding contracts for several weeks based on expected supply shortages or export demand spikes.

Historical Perspective

Turmeric has been traded in Indian commodity markets for decades, but organized futures trading began with NCDEX in 2003. Over the years:

• 2000s: Prices were relatively stable, reflecting domestic demand and steady export flows.
• 2010s: Turmeric experienced significant volatility due to global demand surges and changes in export policies.
• 2020s: The COVID-19 pandemic initially affected supply chains, followed by price recovery as demand for spices and medicinal turmeric products rose.

Recent Update on NCDEX Turmeric

As of September 2025, NCDEX Turmeric is trading with moderate gains due to:

• Healthy domestic consumption in the food and pharmaceutical sectors.
• Steady export demand, particularly for high-curcumin varieties.
• Seasonal production expectations indicating potential supply constraints in key growing regions like Telangana, Maharashtra, and Karnataka.

Traders are watching turmeric futures closely, as any weather disruption or export policy change could lead to significant price swings.

NCDEX Turmeric vs Global Turmeric Markets

While NCDEX Turmeric reflects domestic trends, it is also influenced by global turmeric prices. India’s dominance in production and exports means that NCDEX prices often serve as a benchmark for international trade. Fluctuations in turmeric futures on NCDEX can affect pricing decisions for exporters, importers, and food processing companies worldwide.

Outlook for NCDEX Turmeric

Given the sustained demand for turmeric in culinary and medicinal applications, NCDEX Turmeric futures are expected to remain active with moderate to high volatility. Seasonal factors, crop production, government policies, and global demand will continue to influence prices. For farmers, traders, and investors, staying updated on NCDEX Turmeric futures is essential for effective risk management and profit optimization.

NCDEX Turmeric Futures FAQ

Q. What are NCDEX Turmeric Futures?

A. NCDEX Turmeric Futures are futures contracts based on the price of turmeric, a key spice commodity primarily traded on the National Commodity and Derivatives Exchange (NCDEX) in India. These contracts allow traders to speculate on or hedge against price fluctuations in turmeric, which is widely used in food, medicine, and cosmetics. Turmeric futures are frequently referenced in financial news on platforms like Reuters or Bloomberg as an indicator of agricultural market trends and supply chain dynamics in India.

Q. What are NCDEX Turmeric Futures Contracts?

A. NCDEX Turmeric Futures Contracts are standardized agreements to buy or sell turmeric at a predetermined price on a future date, traded on the NCDEX platform. The standard contract size is 500 kg of turmeric, with a price quotation in Indian Rupees (INR) per quintal (100 kg). These contracts are highly liquid and volatile, influenced by factors like weather and harvests, offering traders multiple opportunities for profitable trades during daily sessions. For example, if you’re bullish on turmeric prices, you can go long on a futures contract, earning INR 100 per quintal increase in the price. Conversely, if bearish, you can short the contract, profiting INR 100 per quintal decline.

Q. What are the trading hours for NCDEX Turmeric Futures?

A. Trading for NCDEX Turmeric Futures occurs from 10:00 a.m. to 5:00 p.m. IST (Indian Standard Time) Monday to Friday, with an additional session on Saturdays from 10:00 a.m. to 2:00 p.m. IST. Unlike global futures markets, there is no overnight or weekend trading beyond Saturday mornings. This schedule aligns with Indian market hours, providing active trading opportunities during the business day.

Q. Why and when were NCDEX Turmeric Futures created?

A. NCDEX was established in 2003 to provide a transparent platform for agricultural commodity trading in India, including spices like turmeric. Turmeric Futures were introduced shortly thereafter to enable farmers, processors, and traders to hedge against price volatility driven by seasonal production and global demand. Designed to reflect the health of India’s spice market, these futures serve as a vital tool for assessing agricultural sentiment and economic trends in the sector.

Q. What are the risks and benefits of NCDEX Turmeric Futures trading?

A. NCDEX Turmeric Futures trading differs from traditional commodity investing and carries significant risks. The volatility of turmeric prices, affected by monsoons, exports, and supply disruptions, can lead to substantial gains but also rapid losses, making it unsuitable for conservative, buy-and-hold investors. Traders who can actively monitor the market and tolerate risk may capitalize on both long and short positions, as futures allow shorting without restrictions like the uptick rule. However, without disciplined risk management, traders risk margin calls if positions move unfavorably. The benefit lies in the potential for high returns due to the leverage and liquidity of these contracts, but constant attention to market movements is essential.

Q. How can I learn NCDEX Turmeric Futures trading?

A. NCDEX Turmeric Futures are a popular choice among traders, but beginners often face challenges due to limited understanding of agricultural market dynamics and trading strategies. Success demands a robust trading plan, strict risk management, and deep market knowledge. Novice traders can accelerate their learning by joining online trading communities or live trading rooms led by experienced NCDEX commodity traders. These platforms enable beginners to observe real-time market analysis, learn strategies suited to their risk tolerance, and gain confidence. Using simulated accounts before trading with real money can also minimize costly errors.

Q. What are other names used for NCDEX Turmeric Futures?

A. NCDEX Turmeric Futures are known by several names or aliases, including:

• Turmeric Futures
• NCDEX TMCFGRNZM Futures
• Turmeric Futures Live
• Haldi Futures (Hindi for Turmeric)
• U3 Futures (Barchart symbol)
• NCDEX Spice Futures