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Price fluctuations, export standards key hurdles for turmeric mkt: Report

Commerce Minister Piyush Goyal formally launches National Turmeric Board

Turmeric

The report by ICRIER, meanwhile, also found that almost 80 per cent turmeric farmers earned less than 50 per cent of their annual income from the crop. (File Image)

Sanjeeb MukherjeeAgencies Delhi

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India, despite holding a commanding share of over 62 per cent of global turmeric trade, faces challenges that impede further growth. They range from rejection of spices in key export markets, price fluctuations leading to farmers withdrawing from cultivation and not meeting the desired curcumin levels required by companies, a report by Icrier, in association with Amway, showed.
 
The report was released on Tuesday amid Commerce Minister Piyush Goyal expressing hope that the newly-launched National Turmeric Board will help develop new markets internationally. This will help promote exports and double production to about two million tonnes in five years.
   
Goyal was speaking at an event to mark the launch of the Turmeric Board, which was notified in October.  
 
The board, to be chaired by Palle Ganga Reddy, its first chairperson, will be headquartered in Nizamabad, Telangana. It will focus on development of turmeric and turmeric products in the country. India is the largest producer, consumer and exporter of turmeric in the world.
 
In the financial year 2022-23, an area of 0.32 million hectares was under turmeric cultivation in India with production of 1.16 million tonnes.
 
More than 30 varieties of turmeric are grown in over 20 states in India. Largest producing turmeric states are Maharashtra, Telangana, Karnataka and Tamil Nadu.
 
The report by Icrier, meanwhile, also found that almost 80 per cent turmeric farmers earned less than 50 per cent of their annual income from the crop.
 
The findings were based on a survey of 262 farmers, 45 farmer-producer organisations (FPOs), and 69 companies engaged in the turmeric value chain.
 
The earnings were less largely due to the farmers’ reliance on cultivating multiple crops like paddy, soybean, maize, sugarcane, and cotton.
 
Farmers also reported a decline in turmeric cultivation in the last three years. This was because of a sudden fall in prices, inadequate infrastructure, unfavourable weather conditions, pest infestation, inability to connect to the right buyers and issues related to soil fertility.
 
On the export front, the report stated that India is able to supply only 10 per cent of turmeric products with the high curcumin content required by global clients.
 
This is mainly due to fragmented supply chains, lack of uniform quality of produce, lack of access to high-quality inputs, gaps in testing and certification, and inadequate infrastructure, among others.
 
In 2022-23, 153,400 tonnes of turmeric and turmeric products valued at $207.45 million were exported from India by more than 380 exporters.
 
The leading export markets for Indian turmeric are Bangladesh, UAE, the US and Malaysia.
 
With the board coming up, it is expected that turmeric exports will reach $1 billion by 2030, according to the commerce ministry.
 
The turmeric market’s value was around $58.2 million in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 16.1 per cent from 2020 to 2028, the report said.
 

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First Published: Jan 14 2025 | 8:18 PM IST

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