Promising Outlook for Turmeric Farmers as Turmeric Prices Rise
Hingoli, a region in Maharashtra renowned for its extensive turmeric production, perceives a positive change for turmeric farmers after years of disappointment due to falling prices. Notably, this year marks the first time in a decade that farmers are receiving good prices for their turmeric crops. The sudden surge in turmeric prices has delighted farmers, with the Kuranda market recording rates as high as USD 2,32 per kg. Encouraged by these favorable conditions, experts and pharma producer companies are advising farmers to consider selling turmeric in installments to potentially capitalize on even higher prices in the future.
Challenges & Hopes for the Turmeric Industry – Turmeric Farmers Seek Government Support
Despite the recent price hikes, challenges persist in the turmeric industry. Unseasonal rains in turmeric-producing states have damaged crops, further impacting farmers’ livelihoods. In recent years, declining prices had led many farmers to distance themselves from turmeric cultivation. While turmeric holds significance in various industries, including medicine and spices, farmers often struggle to receive fair prices for their produce consistently. Unlike other crops benefiting from government insurance, turmeric lacks similar protection, leaving farmers without compensation for crop losses. Farmers are now urging for minimum support price and insurance coverage for their turmeric crops, as these measures could significantly benefit their economic stability.
Decrease in Turmeric Cultivation Across Major States Due to Unfavourable Weather
Turmeric cultivation in India is expected to experience a decline this year, primarily due to inadequate rainfall in significant turmeric-producing states like Maharashtra and Telangana. Adverse weather conditions, including disruptions caused by heavy rains, have hampered agricultural activities in some areas. Projections indicate that Maharashtra’s cultivation may decrease by 10-20%, while Tamil Nadu might observe a decline of 10-15%. Similarly, Andhra Pradesh and Telangana are also expected to face a decrease in cultivation of about 18-22%. As per the estimates by the Spices Board, the country’s turmeric production is anticipated to decrease by 18% this year, further supporting the upward price trend.
Turmeric Prices Rushed as Market Supply Drops
The Turmeric market has experienced a substantial decrease in supply, with current arrivals being 55% lower than the average. Heavy rains in Andhra Pradesh and other turmeric-growing regions have contributed to a decline in turmeric arrivals. Consequently, the reduced supply has led to a notable price hike. Additionally, India’s turmeric exports have increased by approximately 40% over the last three months, driven by high demand and a scarcity of turmeric in the international market, bolstering domestic prices.
Turmeric farmers face both opportunities and obstacles as prices skyrocket amidst reduced cultivation, emphasizing the need for government support to ensure their long-term sustainability. In view of the current scenario, one can make purchases in present conditions because the demand is high and supply is limited.