Turmeric June contract on weekly basis showed 5.82% gains due to a drop in daily supplies and some overseas inquiries.

· Supplies have dropped and are expected to be in this range in the short-term.

· Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states.

· Demand from North India is yet to pick up and that is preventing prices from rising.

· Delayed arrival of Monsoon could have adverse implications on the overall rains in the Southern states which have been receiving less rains over last few years.

· Turmeric arrivals slumped to 7,000-8,000 bags in Nizamabad, from 15,000-20,000 bags in the previous week.

· Meanwhile, arrivals had fallen to 3,500-4,000 bags from 7000-8000 bags in the Erode markets in the prior weeks.

· Indian exports had gradually picked up from an average of 48000-50000 tons to over 65000-79500 tons in the last two years.

· With lower production expected this year, sentiments are likely to remain positive in the near term once demand for the new crop starts picking up.

· Expectations are that production may be lower by 40-50%. There are reports of some crop damage in Erode region.

· Turmeric production in 2012-13 is expected around 45 lakh bags.

· Demand from North India supporting the prices in coming weeks as traders expect improved trading activities in the mandis.

· On weekly basis we have seen that open interest in June contract dropped by 4.69% (i. e 1210 lots) from 25800 lots to 24590 lots.