Profit booking in turmeric after improvement in demand and reduction in sales by stockists
Kedia Advice -Turmeric closed 1.22% lower at Rs 26,984 after traders booked profits on earlier gains. The move came despite a fresh spark in demand, weak sales from stockists and a tight spot market. Carry-forward stocks continued to fall and weather-related crop damage concerns provided some support to the price.
13,446 hectares of turmeric fields were affected by drought in Karnataka. A joint survey by the state horticulture and revenue department and the Karnataka State Disaster Management Authority put the loss at around Rs 18,824 lakh. Industry sources say carry-forward stocks have declined to around 15 lakh bags from 20 lakh bags last season, reducing overall availability. The threat of drought due to El Nino and slower than expected growth in acreage in key areas also helped keep prices up.
Looking to the future, India's turmeric production could increase by about 15% in 2026, especially due to a 20% increase in planting area in Maharashtra. Better monsoon rains in Maharashtra, Telangana and North Karnataka, as well as higher reservoir levels in Telangana and Andhra Pradesh, have reduced fears of crop damage. In North Karnataka, re-sowing is done after recent rains, resulting in better crops.
On the export side, strict EU maximum residue limits are making life difficult for supplies that do not follow integrated pest-management (IPM) practices. Nevertheless, demand for certified turmeric is supporting stocks that meet the standards. India's turmeric exports fell 14% to 14,736 tonnes in August 2026 from 17,136 tonnes a year ago. Yet total shipments from April to August rose 4% to 65,476 tonnes. August shipments to the United Arab Emirates, the Netherlands and Brazil increased by 50%, 57% and 37% respectively, while exports to Bangladesh and Saudi Arabia declined sharply. Prices at the key spot market in Nizamabad rose 0.89% to Rs 25,304.95.
From a technical point of view, fresh selling pressure is visible. Open interest rose 0.6% to 18,555 contracts while prices declined by Rs 332. Turmeric found support at Rs 26,330, next price at Rs 25,680. Resistance sits at Rs 27,750. A strong break above Rs 27,750 could take the market to Rs 28,520, while a fall below Rs 26,330 could push it down to Rs 25,680.
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Conclusion for turmeric traders
- It fell 1.22% due to profit-booking despite new demand.
- Supplies remain tight in Karnataka due to falling carry-forward stocks and drought-related losses.
- Production is expected to increase by ~15% in 2026 due to expanded acreage and improved monsoon.
- EU residue rules are limiting non-IPM exports, but certified turmeric continues to find buyers.
- Technical Outlook: Hold above Rs.27,750 till Rs.28,520; If it breaks below Rs 26,330, a fall to Rs 25,680 can be seen.