Turmeric futures dropped 1.21 per cent in early trade on the National Commodity and Derivatives Exchange (NCDEX) on Monday because traders kept cutting their positions, due to a slow demand in the physical markets and a likely rise in acreage this season.
For the June-month contract also, Turmeric continued to fall and shed 0.72 per cent at Rs 4,970 per quintal in a business volume of 2,940 lots. The contract had fallen 3.99 per cent in the previous session.
According to market analysts, a considerable fall in demand for the spice at the physical markets and a likely increase in acreage this season, mainly put pressure on the prices.
They said prevailing higher prices of turmeric also attracted farmers to start cultivation a week earlier than normal too added to the downward trend in the spice futures market.
However, thin arrivals in major spot markets and an estimated drop in supplies this year limited losses to a certain extent, they added.
In the meantime, turmeric arrivals at the Nizamabad spot market fell 23 per cent to 11,753 tonnes in April due to an estimated fall in output.
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