Turmeric is an important spice grown in India since ancient times. It is referred as Indian saffron and commonly called as Haldi in India. It is reported to have originated in India. It is scientifically known as Curcuma longa. India is the largest producer and consumer of turmeric.
Turmeric is a perennial shrub grown for its underground rhizomes. The roots have a unique flavour and colour that are used for various purposes ranging from culinary uses, food processing and pharmaceutical industry.
Rhizomes are economically important part and they are dried, powdered and marketed for various culinary other purposes.
It is a common ingredient of Indian curry and other food preparations particularly in south Indian cooking.
Turmeric is also known for its medicinal value and its used as an antiseptic in India since ancient times.
It is widely used in dye, drug and cosmetic industries.
It is also used in pujas and religious ceremonies.
Climate and Cultivation
Turmeric is a plant that is cultivated and propagated with the help of its rootstalk. It needs hot and humid climate. Well suited for light black or red soils that are clayey in nature. It comes up well at temperature between 20o to 30oC and an annual rainfall of about 150cm. It is grown from the sea level to 1200 meters above mean sea level. The harvesting of this plant is done when the leaves of this plant start turning yellowish after 7 to 10 months of plantation. The plant is harvested by digging the rootstalks up.
India is the largest producer of turmeric and apparently accounts for more than 80% of the world's production. There are no authentic sources of precise production numbers on turmeric production in the world. However, as per the report published by the APEDA, apart from India, China contributes for about 8% of world's turmeric production followed by Myanmar with 4%, Nigeria and Bangladesh with 3% each share in total turmeric production in the world.
India is apparently he largest producer, consumer and exporter of turmeric in the world. Turmeric is the third largest spice produced in the country and it accounts for about 14% of total spices produced in India.
Turmeric production has been rising steadily but slowly during the past decade particularly due to rise per hectare yields despite near stagnation in area under cultivation. As per the latest available estimates from the Spices Board of India, turmeric output rose to about 12.5 lakh tons in 2011-12 from about 7-8 lakh tons in the mid 2000s. However, the estimates of Horticulture Board are lower than that of Spices Board at about 10.6 lakh tons in 2011-12 but indicate a similar growth trend.
Turmeric production is largely concentrated in southern states Andhra Pradesh and Tamil Nadu accounting for nearly 80% of total output in the country. Andhra Pradesh is the single largest producer of turmeric accounting for more than 60% of total turmeric produced in the country. Tamil Nadu is the second largest producer contributing for about 17% of output in the country followed by Odisha, West Bengal and Karnataka.
Physical markets: Duggirala, Tenali, Cuddapah, Adilabad, Medak, Nizamabad, Guntur
Futures Trading: NCDEX.
India is the largest and net exporter of turmeric. On average India exports about 50 thousand tons of turmeric every year.
Major export destinations: UAE, Sri Lanka, Bangladesh, US, Malaysia, Japan, UK and Iran.
Major import sources: NA
Factors Influencing Prices
- Crop: Extent of area sown under the crop, condition of the crop and thereby the expectation.
- Rainfall and weather conditions that could affect the crop output.
- Demand expectation: Any changes in demand both domestic as well as international markets.
- Government intervention policies: any change in government policy relating to the crops such as
- Changes in minimum support prices (MSP)
- change in tariffs and
- changes in external trade policies with respect to the commodity.