Turmeric prices advance to Rs 33 a kg on supply crunch

Supply crunch has tipped the prices of polished turmeric higher at the Rs 33 per kg level, which is almost Rs 5-7 more than the price level seen in June 2005.

Prices are high in Erode compared with other major turmeric-producing centres in the country. The minimum price of the polished turmeric is Rs 29.50 per kg.

The unpolished turmeric costs Rs 27.50 per kg in Erode; it was Rs 22 in June. In Dugirala and Cudappa, the prices have touched the Rs 25.50 mark, vis-a-vis Rs 18-19 in June 2005. The price per kg in Nizamabad, which was Rs 21 in June, is at present Rs 27.60.

According to Indian Spice and Foodstuff Exporters' Association chairman Kirandip Singh Swani, the crop this time was less because of the low sowing acreage.

"Moreover, the rains adversely affected the quantity of carryover stock in Andhra Pradesh, the major turmeric-producing state. More than 30,000 tonne turmeric was damaged all over India," Swani said.

"Due to the high festive demand the consumption had gone up during Dussera and Diwali in most of the north Indian states. Thereafter, stock dwindled, and, hence, the shortage. Now with the wedding season having set in, the consumption rate has started increasing, pushing the prices up," market sources said.

India is the largest producer of turmeric, supplying more than 90 per cent of the world's demand. Exports of turmeric during April 2004-February 2005 were 38,500 tonne, valued at Rs 141.74 crore, against 28,750 tonne worth Rs 107.80 crore in the same period a year ago.

India has 180 lakh hectare under turmeric cultivation with a total production of 700 lakh tonne. Andhra Pradesh accounts for 40-50 per cent of the total production followed by Tamil Nadu.

UAE is the major importer of Indian turmeric accounting for 24.06 per cent of the total exports, followed by the United States of America importing 12.93 per cent. The other leading importers are Japan, the UK and Sri Lanka.