In the spice market coliseum, 2024 spells trouble for turmeric, the golden jewel in Indian kitchens. Whispers of market woes reveal a blow to production due to indifferent weather playing its hand. Despite turmeric’s reputation for resilience, it braces for a challenging year with October-November demand hitting rock bottom. Yet, a silver lining emerges as subdued demand might tip the scales against the looming production challenges. The spice, once golden, faces a year of shadows and whispers in the culinary world.
Fields Frown As Turmeric Plantations Are Down 25-30%
Reports from the spice battleground indicate a significant downturn, with turmeric plantations plummeting by 25-30% compared to the usual acreage. Experts highlight the expectations of lower production in key turmeric states such as Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, and beyond. The shift of farmers to other lucrative crops exacerbates the predicament.
Price Surge and Demand Dips
In the turmeric market, the price rollercoaster unfolds, witnessing upward swings and downward spirals. The Director at Amar Agarwal Foods India Pvt Ltd observes that the initial futures market prices soared to $1,92 or €1,9 per kg before sliding to approximately $1,45 or €1,20. This volatility reflects the ebb and flow in the market. The demand slump during October-November, an unprecedented low in 50 years, brought forth a unique market scenario.
Climatic Conditions and Crop Production Clarity Awaited
Experts anticipate a range-bound market with slight fluctuations until January. Following this, with a clearer picture of crop production, prices are poised to ascend. As the market awaits new crop arrivals post-mid-January, factors such as production conditions, climate, festival season demand, and export requirements will shape the market trends. An optimistic outlook suggests a record-high price surge, encouraging farmers to embrace turmeric cultivation, potentially leading to a supply shortfall.
Turmeric, the golden spice, faces a potential 25% production dip in 2024 due to unfavorable weather conditions, triggering concerns among traders. Reports reveal a significant decrease in turmeric plantations, down 25-30%, with expectations of lower production in critical states. The market experiences a price rollercoaster. While demand hits an unprecedented low, the market awaits clarity on climatic conditions and crop production, anticipating a range-bound need until January. The spice’s resilience might counterbalance the challenges, with a potential record-high surge encouraging farmers.