High prices and limited availability in India have affected exports of turmeric, but domestic markets are showing signs of lucrative returns.
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New Arrivals
The onset of new turmeric arrivals across India’s major producing states has exerted downward pressure on prices. Notably, the Marathwada division in Maharashtra is poised for the imminent commencement of its crop, potentially easing prices further. Until recently, elevated turmeric prices had adversely impacted exports, limiting foreign buyers to purchasing only essential quantities.
Export Figures Decreased
January 2024 saw the export of 14,490 tonnes of turmeric from India, a slight decrease of 2.17 percent from December. However, the annual overview for 2023 reveals a significant uptick. With total exports reaching approximately 24 million tonnes, marking a 6.68 percent increase from 2022. This growth has emboldened stockists with a bullish outlook.
Despite the high prices dampening export demand, trade analysts anticipate that turmeric prices will stabilize at $180 to $192 per quintal during April and May. Following this period, prices are expected to fluctuate in response to the prevailing demand and supply dynamics. In Karnataka, following Erode’s lead, farmers in Chamarajanagar district are now experiencing a surge in income. The local market prices reaching as high as $240 per quintal—the highest in 13 years—yielding substantial profits for local farmers.
Experts attribute this price surge to a reduction in cultivated area following last year’s drought and price declines, which in turn diminished production. The Erode district in Tamil Nadu, known as a major turmeric hub. It mirrors this trend with prices exceeding $252 per quintal. This significant price rise—the first of its magnitude in a decade—commenced in mid-March, increasing by $72 to $84 per quintal.
Decreased Cultivation Area
The area cultivated in Chamarajanagar has decreased to 7,207 hectares this year due to the prior price drop and drought conditions, leading to tighter supplies and higher prices, thereby benefiting local producers. Nagarjun Kumar, Vice President of the Chamarajanagar District Turmeric Producers Association, noted that the rising prices are bringing good profits to farmers in Tamil Nadu and Kerala, where turmeric is currently selling for $192 to $240 per quintal.
Local enthusiasm is tempered by predictions of potential price reductions linked to increased political activities. Sanjay is the Deputy Director of Horticulture in Chamarajanagar. He emphasized the role of the One District One Product (ODOP) scheme in supporting the turmeric industry. This initiative aims to bolster micro food processing enterprises through financial and technical aid.
Recent reports from Erode highlight a new peak in turmeric prices at $256.43 per quintal, sparking dialogues among traders about the unprecedented value of this vibrant spice. With the auction starting at $180 per quintal last month. Quickly escalating to $252, there is widespread anticipation of further increases.
This narrative captures the complex interplay between agricultural practices, market forces, and regional developments shaping the turmeric industry’s future.
