Press Release

Store Turmeric and Sell in April, May

Turmeric (Curcuma Longa) known as ‘Indian Saffron’ is considered to be the best in the world due to presence of high curcumin content. Turmeric is an important ingredient in cosmetics as well as in the pharmaceutical industry. India is considered as the largest producer, consumer and exporter of turmeric in the world. Normal area under turmeric cultivation is 195.1 thousand hectares with an average productivity of 5.1MT per hectare. Global production is estimated around 11 - 11.5 lakh tonne. India contributes about 80 per cent of the world production and 60 per cent to the total trade. Other major producers are China, Myanmar, Nigeria, Bangladesh, Pakistan, Sri Lanka, Taiwan, Burma and Indonesia, etc., India is also the largest consumer of turmeric in the world accounting for nearly 90% of total production. India is the largest exporter in the world although only about 6% of its total production is exported. During 2011 India exported more than 67000 tonnes of turmeric to the United Arab Emirates (UAE), United States of America USA, Bangladesh, Japan, Sri Lanka, UK, Malaysia, South Africa, Netherlands and Saudi Arabia. The UAE is the major importer of turmeric from India followed by the USA.

Major turmeric producing states in India are Andhra Pradesh, Tamil Nadu, Orissa, West Bengal, Karnataka and Kerala. Andhra Pradesh occupied more than 56528 hectares of total area followed by Tamil Nadu and Karnataka. In 2012, turmeric sowing in Andhra Pradesh was down at 19.7 percent from last year. Also, the production for the year 2012-13 is likely to decline due to lower acreage.

Turmeric prices are expected to trade lower in the near-term due to the start of new crop arrivals and turmeric has been trading in sideways manner for the past few trading session. Fresh crop arrivals are likely to gather pace by February end. The spot price for finger variety stood steady in Nizamabad at Rs.5400 per 100kg and in Erode, it fetched Rs.6200 per 100kg. In Karnataka, turmeric is traditionally grown in Chamarajnagar district which is traded in APMC. Mostly buyers from Erode and Kerala participate in trade apart from local traders.

In order to help the farmers of Karnataka to take a right selling decision, the NAIP Agricultural Market Intelligence Cell of the University of Agricultural Sciences, Bangalore took up the analysis of historical prices of turmeric from Erode market as the newly established APMC for turmeric in Chamarajnagar closely follows Erode market prices. The price analysis has predicted that the prices would be in the range of 6350-6600 per quintal in the month of March and Rs. 6250- 6480 in the month of April and 6600-7100 in the month of May. Farmers are advised to store and sell in April, May 2013. This forecasts prevail for the current market sentiments only.

According to Chamarajnagar traders survey says that turmeric prices for the next two months are in the range of Rs.6200-7000 per quintal and in the month of June there is a possibility of increase in price due to low production i.e nearly 40-50% as compared to previous year production. Next planting will take place on in the month of April-May and it also depends on rain.

NCDEX future price for next three months is given in the range of Rs. 6408-6516 per quintal

Research team

Dr.C.P.Gracy., Nagashree,N., Jyoti Naik

Agricultural market intelligence cell, Dept.of AMC &BM,

UAS,GKVK, Bangalore560065