It’s raining good news for turmeric producers

By Krishnakumar P K

Kochi: The rains pounding coastal Tamil Nadu may spell good news for turmeric output. Production may increase in the turmeric growing belts of Erode and Salem in the state, partly offsetting a shortfall expected next season due to scanty rains earlier in Telangana and Andhra Pradesh. Telangana and Andhra Pradesh together contribute around 60% of the output of turmeric, which has now high demand in the nutraceutical sector. Tamil Nadu is the next biggest producer.

“Turmeric yield in Erode could be higher by 20-30% as a result of good rains. But it still could be hand-to-mouth existence as the crop in Telangana, Andhra Pradesh and Maharashtra could be lower,” said RV Ravishanker, president of the Erode Turmeric Merchants Association. Production in the country is expected to reach 45 lakh bags, each weighing about 75 kg. There is also a carryover stock of 25 lakh bags, taking the total to 70 lakh bags, which is almost the same as domestic consumption, Ravishanker said. Production topped 80 lakh bags in the past few years.

India is the largest producer of turmeric and over 80% of the output is consumed locally. Large curry-powder manufacturers buy bulk quantities at the time of harvest, which extends from January to March, and hence they are cushioned against the price escalation to a certain extent. But they are also worried that speculators could drive up prices again. “Turmeric prices usually come down after Diwali. However, the reverse has happened” this time, said Feroz Meeran, managing director of Eastern Foods and Condiments. “We buy around 30% of stock during March-April and hence are comfortable. But the prices are likely to remain high.”