India produces 80% of world turmeric production.However, India consumes around 70% of its produce.
Market Overview
One of the most pursuedcommodities during “covid” pandemic due to its anti-inflammatory properties and immunity boosting claims have failed to create enthusiasm among farmers in India.
Moreover, flood during July 2021 in growing regions of Nizamabad and Sangli had caused crop damage to the tune of 20-30% in those regions. This is in contradiction to the earlier prediction of higher crops during the sowing time. In the state of Telegana -(largest turmeric producing state 41%)there has been crop damage in 200,000 hectares in total due to flood out of which turmeric farm contribute a large area as most the turmeric farms are near to riverbeds of river Godavari.
Area under turmeric cultivation in India is slowly getting reduced due its lower profitability and high labour requirements. People are shifting towards other crops like cotton and sugarcane. Turmeric is bought by the turmeric powder manufacturing companies, Masala companies and for extraction and isolation of curcumin which is used in Nutraceutical industry. Overall carryover stocks of raw turmeric, powder stocks and curcumin are at historically low. This will put buying pressure when the market opens.
There are multiple reasons of crop damage
- Flood Crop Damage
- Pest attack and disease:
- Leaf spot
- Shoot borer
- Nematode pests
Spot price of Turmeric in NCDEX (commodity exchange)
Price in commodity exchange has increased about 30% in last 2 months as a result of news from the growing regions. Even though there could be a lot speculation in virtual markets, this in turn put pressure on buyers.