MUMBAI – Last June, the report was that the turmeric market is having a high due to the Covid-19 pandemic, but now if the market value of the commodity is to be taken into account, then the picture is different. There has been a slight slump in the price, and it is likely to continue that way.
Till June 2021 and the previous year, turmeric has experienced high industrial demand due to its medicinal properties. This led farmers to grow more turmeric and started sowing it. But this overproduction of turmeric can become a significant concern for farmers since the market is dipping.
According to a trader, there is likely to increase by 15 to 22 per cent in the states like Tamil Nadu, Telangana, Andhra Pradesh and Maharashtra. These are the major turmeric producing states and are likely to be 3 lakh hectares plus acreage if the sowing is done as expected.
However, there has been a recent slump in demand for the turmeric market in India and internationally. In February and March 2021, the spice sold at USD 0,97 to USD 1,02 /Kg, but now it has gone down to USD 0,84 to 0,89/Kg. For average quality, the pricing has gone down from USD 0,85 to 0,75/ kg, and Europe quality too witnessed a slump in the price with USD 1,09 to 1,05/ kg.
With new crops entering the market soon, the price must pick up domestically. Also, exporters wish that the shortage of containers soon ends, impacting the turmeric exports.