DEPOSIT AND DELIVERIES
Turmeric (Quan�ty in MT)
12000
10000
8000 Commodity at a Glance
NCDEX Turmeric Futures
6000
4000
2000
0
2018-19 2019-20 2020-21 2021-22 2022-23
Deposit Delivery
CONTRACT SPECIFICATIONS Source - NCDEX
Commodity Ticker Symbol Basis* Additional delivery center* Delivery Logic
Turmeric TMCFGRNZM Nizamabad Sangli, Erode, Basmat Compulsory Delivery
Trading and Position Limits
Quotation GST Delivery Unit Tick Size Expiry date Aggregate Near Month
Rs. per quintal Exclusive 5 MT Rs.2 20th of the Member Client Member Client
delivery month 56,000 5,600 14,000 1,400
Farmer Polished Turmeric Fingers with the following specifications as the basis
Farmer Polished Turmeric Fingers
• Inferior quality Turmeric* should not be more than 2.25%
• Length
o Fingers that are broken/those less than 15mm should not be more than 3.0%
o Fingers less than or equal to 3 cm in length should not be more than 15%
• Damage due to moisture (i.e. Lokhandi) or over boiling (i.e. Kadh) should not be more
Quality
than 1.2%
Specifications • Unboiled or less boiled (Gajarthod) turmeric should not be more than 0.5%
• Bhusa, chaff dirt, earth clods and stones should not be more than 0.75%
• Bulbs should not be more than 3%
• Moisture: 12% max
• Turmeric should be free from fungus Benchmark Futures contract for Turmeric
• Turmeric should not be artificially colored with dyes or chemicals Hedging and price risk management tool for value chain
* Chora/atthu finger, khota gatha, markha Efficient and Transparent price discovery
* upto the radius of 50 kms from the municipal limits. For detailed contract specifications visit website www.ncdex.com Robust delivery mechanisms
Connects the entire value chain
National Commodity & Derivatives Exchange Limited
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Turmeric is very important spice in India, which produces nearly entire whole world’s crop and
TURMERIC MONTHLY ANNUALISED PRICE VOLATILITY
consumes 80% of it. Turmeric Monthly Spot Price Vola�lity
Indian turmeric is considered to be the best in the world market because of its high curcumin
30.00%
content.
India accounts for about 80 % of world turmeric production and 60 % of world exports. 25.00%
Telangana and Andhra Pradesh together occupy 50% of the total area followed by 20.00%
Maharashtra, Karnataka and Tamilnadu.
15.00%
SEASONALITY 10.00%
Fresh turmeric arrival in India starts from mid-January and continues till June. Stored produce 5.00%
is available throughout the year. Sowing of turmeric starts from mid-June to October.
0.00%
Turmeric crop takes 180 – 200 days to mature and needs another 10-15 days of on farm Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
post-harvest activities to make the turmeric acceptable for consumption. 2018-19 2019-20 2020-21 2021-22 2022-23
Source - NCDEX Futures Price
PRICE RISK HEDGING
Processor/ Hedger locks in Farmer/ Hedger locks in
the Turmeric price at Rs. Long Hedge Short Hedge the Turmeric price at Rs.
6200/ quintal for a Long 500 500 6500/ quintal for a short
position. 400 400 position.
P&L in Rs per Quintal
300 300
If the price of Turmeric If the price of Turmeric
P&L in Rs per Quintal
200 200
decreases in the physical 100 100 decreases in the physical
market, the gain in the 0 0 market, the loss in the
physical market is offset by 5800 5900 6000 6100 6200 6300 6400 6500 6600 -100
6100 6200 6300 6400 6500 6600 6700 6800 6900 physical market is offset by
-100
the loss in the Futures -200 the gain in the Futures
-200
market. -300 market.
-300
-400 -400
If the price of Turmeric -500 If the price of Turmeric
-500
increases in the physical Long Futures Short Physical
Long Physical Short Futures increases in the physical
market, the loss in the market, the gain in the
physical market is offset by physical market is offset by
gain in the Futures market. loss in the Futures market.
Graphs : For illustrative purposes only
FACTORS INFLUENCING THE PRICE
USES OF TURMERIC
Weather condition in Turmeric producing areas especially
The tuberous rhizomes or underground Curcumin, a phytochemical is the active at sowing, flowering and harvesting stage
stems of turmeric have been used from ingredient in turmeric and has wide range of Demand for Turmeric seed from Spice manufacturers in
antiquity as condiments, a dye and as an therapeutic effects. India and Exporting Countries
aromatic stimulant in several medicines. Government policies on Import and Export
Carryover stocks
