Turmeric on NCDEX settled up 1.08% at 7508 on short covering amid rising demand at the spot market. As per market sources, production year 2015-16 started with carry-forward stocks of 1.4 lakh tonnes compared to 2.1 lakh tonnes in 2014-15. The consecutive back-to-back droughts in India have impacted turmeric production in 2014-15 and 2015-16. India produced 2.52 lakh tonnes of turmeric in 2015-16, lower by 15 per cent than the previous year. Production declined on account of lower acreage in Tamil Nadu and comparatively low yield in Maharashtra, Andhra Pradesh, and Telangana. This makes the total supply for 2015-16 at 3.57 lakh tonnes against the consumption demand of 3.46 lakh tonnes, leaving stocks of mere 0.11 lakh tonnes compared to 1.4 lakh tonnes in 2014-15, down by over 90 per cent. In Andhra Pradesh, till 17-08-2016 week ending Turmeric sowing complete around 10522 hectares as compared to last year 9772 hectares. Normal area is seasoning around 19059 hectares. At Warangal market arrivals were reported at 300 bags, steady as against previous day's arrival. At Erode market total arrivals are at 4500 quintals, higher by 2500 quintals as against previous day. At Nizamabad market sources reported arrivals at 1500 quintals, steady as against previous day's arrival. At Sangli market arrivals were reported at 1200 quintals, down by 1600 quintals from previous trading day. Technically market is under short covering as market has witnessed drop in open interest by -4.01% to settled at 20825 while prices up 80 rupee, now Turmeric is getting support at 7391 and below same could see a test of 7273 level, And resistance is now likely to be seen at 7601, a move above could see prices testing 7693.

Trading Ideas:

Turmeric trading range for the day is 7274-7694.

Turmeric prices ended with gains on short covering amid rising demand at the spot market.

India produced 2.52 lakh tonnes of turmeric in 2015-16, lower by 15 per cent than the previous year.

NCDEX accredited warehouses turmeric stocks dropped by 30 tonnes to 7511 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7842.1 rupees dropped -48.35 rupees.