Rise in turmeric prices
Turmeric prices are skyrocketing nowadays. In this Kharif season there is decrement in sowing of turmeric. This is the main reason why turmeric prices are increasing rapidly from the past few days. Again the sowing is affected due to delayed monsoon.
On the commodity exchange board of India, NCDEX (National Commodity and Derivatives Exchange), the price of turmeric has increased by about 23% in the last 5 days. Mr Indrajit Pal, a commodity expert has predicted a reduction in turmeric sowing in the producing states of Maharashtra, Tamil Nadu, Telangana and Andhra Pradesh due to delayed monsoon. IIFL Securities says that there is news of some damage to the sown turmeric crop due to the recent rains. Due to which the productivity of turmeric may decrease. This has also strengthened the rise in turmeric prices. Looking at the present circumstances, it is predicted that the turmeric prices may soon cross USD 122 per quintal.
Farmers are not getting good prices for turmeric, Government must Increase the MSP
Due to long monsoons this year in major districts, farmers did not get much higher turmeric prices from the marketing yards in the past few months. The government has considerably increased the Minimum Support Price (MSP) of pulses and oilseeds crops. But the turmeric story is the same as before, therefore farmers are not as interested in turmeric cultivation like they used to be. A farmer says that the cost of turmeric cultivation is high, but the price is only USD 0,60 – 0,85 per kg.
Most of the farmers have decided to reduce turmeric cultivation. Some agricultural experts’ say that a picture of huge reduction in turmeric cultivation area can be seen in near future.
Demand For turmeric is intact
The August contract of turmeric may soon cross USD 1,25 per kgthe way prices are increasing day by day. On the other hand export demand for turmeric is also strong. In the year 2022 – 2023, the export of turmeric increased by 11% (about 0.17 Million Tonnes). In April, about 4% increment is seen in exports of turmeric compared to March. Traders have withdrawn more than 80% of the stock from their warehouse. Soon stock will be cleared and there will be demand for turmeric. This will create an imbalance in Demand – Supply which will further adhere to increase in prices of turmeric.
To conclude in simple words,
farmers are not getting enough returns on the crops. Government support is less and also the monsoon is delayed. So, the availability of turmeric might reduce as the farmers are not interested in turmeric cultivation. But another side of the coin says that its demand is good enough and also the export is increasing. If demand will be high and goods will not be available, then this might lead to an increase in the prices of the goods.
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