Turmeric prices may go up 25% on output drop

INCESSANT RAINS SEND SHIVERS DOWN MARKET SPINE

Turmeric prices are likely to rise up to 25 per cent i.e, by Rs 500, following the nearly 10 per cent loss in output from Maharashtra owing to heavy rains.

Presently, the Nizamabad average variety of turmeric is quoted in the range of Rs 2,250-2,600 per quintal while Nizamabad fair quality (NCDEX-variety) is sold in the range of Rs 2,600-2,700 per quintal.

Rajapuri variety is quoted in the range of Rs 3,000-4,000 per quintal and Kadappa Desi is priced between Rs 2700 - 2900 per quintal.

The prices had remained steady last month because of dip in demand during the rainy season. However, the heavy rains have brought about major losses for the turmeric farmers in Maharashtra.

Last year, the farmers had suffered losses to the tune of Rs 5 crore owing to around 25 per cent dip in production. Though the state government had offered compensation packages, the farmers are yet to receive them.

The losses were caused by damages in khatti (where the turmeric is stored underground).

"The real amount of loss is yet to be quantified as flood still continues in the farming areas alongside the river in this sowing season," said Sharad Shah, secretary, Shri Halad Vyapari Association, Sangli.

"The turmeric prices may further go up in case the early crop losses are higher this year or the acreage area is much lower as a substantial percentage of turmeric farmers have already shifted to sugarcane from turmeric. Therefore, the industry is estimating a huge loss in output this year," a local trader said.