New Delhi (PTI): A sudden spur in the export demand coupled with lower production have triggered turmeric prices in the futures market by 2.33 per cent to Rs 3,545 per quintal on Wednesday.

"Turmeric prices at NCDEX counter are bullish because of the strong export demand and tight domestic supplies," Karvy Comtrade analyst Amand Rajalaxmi told PTI.

Exporters are enquiring and placing orders much in advance this year. The demand, which normally picks up during August-September period, however, have started pouring in May itself, she said.

India exported about 44,000 tons of turmeric during April-February 2007-08 period.

At 1300 hours, turmeric prices of most active June contract shot by 2.33 per cent to Rs 3,545 per quintal, May contract rose by 2.30 per cent to Rs 3,729 per quintal and August contract went up by 2.28 per cent to Rs 3,728 per quintal.

"Exporters are rushing to the market in anticipation of lower production, which is estimated to be at 7.5 lakh tons in the current season against 8.9 lakh tons in a year-ago period," Nizamabad-based trader Suryanarayan Saboo said.

Arrivals have slowed down in the last few weeks despite there being a strong demand for the commodity. Arrivals have come down to 3000 tons today from 10,000 tons on a daily basis, he said.

"So far 8.5 lakh bags of turmeric have arrived and we are expecting another 2.5 lakh bags in the coming weeks," he said.

Prices are bullish in the physical market as well. Prices at Nizamabad market in Andhra Pradesh have increased to Rs 3,200-3,600 per quintal today from Rs 1,900-2000 per quintal in the last year.