Survey predicts upward trend in turmeric price

With the reduction in the area under cultivation and increase in demand for turmeric in the region, there could be an upward trend in turmeric prices in Tamil Nadu, thereby benefiting the growers substantially, according to a survey conducted by the Domestic and Export Market Intelligence Cell (DEMIC) of the Centre for Agricultural and Rural Development Studies (CARDS), Tamil Nadu Agricultural University.

N Raveendran, project coordinator, CARDS, who conducted the survey, said that Tamil Nadu occupied 13 per cent of total turmeric area and in case of production, it accounted for 13 per cent of the total production.

"The area under turmeric in Tamil Nadu reached the maximum of 33,000 hectares during 2000-2001 and thereafter started declining due fall in prices. But again the area under turmeric increased during 2004-2005 to 21,616 hectares from 16,181 hectares in 2003-04. Moreover, many turmeric farmers in the region have shifted to sugarcane cultivation considering the inadequate water supply and better price realisation. All this has led to a decline in the acreage," he added.

However, the reduction in the area was compensated by increased area under turmeric in Salem district.

The important turmeric varieties grown in Tamil Nadu are Erode local, BSR-1 and 2, PTS-10, Roma, Suguna, Sudarsana and Salem local. Among these, local varieties constitute 70-75 per cent.

Erode Regulated Market (ERM) is the only regulated market functioning throughout the year whereas the other turmeric markets in Andhra Pradesh, Maharashtra and other states are seasonal in nature.

Fresh turmeric arrival in ERM starts from mid-January to June and stored product is available throughout the year. During January to April, turmeric from the Mysore region comes to Erode market regularly where it experiences good demand.

According to trading sources, March - April is the peak arrival period when the price would be 8 to 10 percent less than the normal price. After this, there usually exists an upward trend in the prices of the commodity.

Hence, the price of finger variety, the fast moving one that currently trades at Rs 2227 per quintal, is expected to increase after the month of July, 2006 and may reach Rs 2800-2950 per quintal during August to December 2006.

Hence, the survey has advised the farmers to hold their stocks up to July and release them after December 15, 2006 to get maximum price.