The world of spices is poised for a potential storm in the coming months, and the heart of this storm might be the golden spice, turmeric. Unfavorable weather conditions have shadowed turmeric plantations, raising concerns about a possible decrease in production and a subsequent price surge.
Turmeric Production Faces a 20% Decrease
In the spice-rich lands of India, particularly in Gujarat, analysts sound the alarm as they predict a 12 percent decline in turmeric production. Market reports from the region suggest that turmeric plantations cover 25 to 30 percent less area than usual. This decrease in cultivation is not confined to one region; Tamil Nadu, Telangana, and Andhra Pradesh all witness a decline ranging from 20 to 25 percent in cultivation. Experts highlight adverse weather conditions during sowing as a significant factor. Farmers, faced with unfavorable conditions, opt for alternative crops, leading to an anticipated drop in turmeric production for the 2023-24 season.
Maharashtra and Tamil Nadu Brace for Impact
The concerns extend beyond Gujarat, reaching states like Maharashtra and Tamil Nadu. In Maharashtra, there’s an expected 30 percent reduction in turmeric production, while Tamil Nadu braces for a 20 percent decline. This significant dip is a cause for worry, with the estimated crop at 4,87,500 tonnes compared to the previous season’s 7,35,000 tonnes.
The decline in turmeric prices stems from decreased production and a sharp drop in demand. Seasoned businessmen in the spice trade express astonishment at witnessing such historically low demand, a phenomenon not encountered in the past 50 years, and the months of October and November witnessed a substantial slump in turmeric demand.
The price of turmeric at the Erode Agricultural Produce Marketing Committee yard is approximately $1,46 or €1,23 per kg, while in Nizamabad, it slightly increases to about $1,47 or €1,24 per kg. Projections for the April turmeric contract on NCDEX indicate a potential fluctuation between $2,17-$2,29 or €1,83-€1,94 per kg and $1,81-$1,74 or €1,53-€1,47 per kg.
Adverse weather conditions in India are set to impact turmeric production, leading to a projected 20% decrease. States like Gujarat, Maharashtra, and Tamil Nadu face significant declines in cultivation, raising concerns about a potential surge in turmeric prices. The spice industry witnesses historically low demand, with seasoned traders expressing surprise at the downturn. The current per kg prices and future projections complicate the situation, creating uncertainties for exporters and traders in the global spice market.
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