MUMBAI, Oct 7 (Reuters) - Indian turmeric futures climbed on Wednesday on festive demand and fears heavy rains in top producing states like Andhra Pradesh, Karnataka and maharashtra may damage the crop, analysts said.
At the cash market the buying interest for the festive season is seen gaining pace. Meanwhile rains in Andhra Pradesh have limited the activity at the auction," Kotak Commodity Services said in a research note.
Hopes of good domestic and overseas demand in coming weeks also supported the prices, they added. Turmeric exports rose by 25 percent on year in August, Spices Board said last month.
Demand for spices usually goes up during August-October,the country's peak festival season. Traders said stocks were inadequate as output fell sharply last year due to lower
acreage.
In Nizamabad, a major spot market in Andhra Pradesh, price rose by 68 rupees to 8,170 rupees per 100 kg.
Profit-taking and higher acreage under the spice limited the rise, they said.
India's turmeric output in 2009/10 is likely to spike as area under the spice expanded and August rains ensured yields would be near normal despite spotty rains in June-July, traders
and exporters said.
Following are the closing prices of turmeric futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd.
Source : REUTERS