Production of turmeric is less in South India – Insufficient to meet the demand
In the present fiscal year 2023, turmeric production is decreased by 45-50% in all the producing areas of South India. Some traders are under the impression that there are old stock of turmeric is available in sufficient quantity. But this mindset needs to be change because the old stock is available only to a few traders and that too in limited quantity. The production of turmeric in the current year is hardly 50 percent.
The circuit in future prices of turmeric
On one hand, the production of turmeric has decreased and on the other hand, its demand is increasing. Comparatively, the price of turmeric was less but as with the increase in demand the price is also increasing and the market has become intensified. A fast circuit has also started in the futures market, due to which the market has started increasing the spot market by USD 4.85 per 100 kg, and in view of the shortage of goods, it seems to be getting faster and faster by USD 12.15 per 100 kg in the local markets.
Exporters are stocking up good quality turmeric
Looking at the present market conditions, exporters have started buying better quality turmeric considering future aspects of the unavailability of the goods. By this time the production of turmeric is finding it difficult to come above 6 Million Bags in the opinion of experts. The compressive domestic and export consumption doubles the available bags i.e. 12 Million Bags.
A total of approximately 7 Million bags could be achieved including new and old stock. In this way, turmeric came into shortage. But the ironic part is that brand-making companies and grinding traders were sitting relaxed, that old and new stock of turmeric is in abundance.
Some historical data for further reference carry out stock in 2023
In 2021-22, turmeric production had increased to 0.467 from 0.446 Million Tonnes. Imports increased to 19k Tonnes from 18k Tonnes. Total turmeric supply had decreased to 0.515 Tonnes from 0.562 Million Tonnes including a carryout stock of 29k Tonnes. Exports had decreased to 0.137 from 0.183 Million Tonnes and consumption remained the same at 0.35 Million Tonnes as in the previous year. Carryout stock for the year 2022-23 was only 28k Tonnes.