Indian turmeric farmers, despite producing one of the most sought-after spices globally, are facing mounting compliance costs that threaten their livelihoods. With fragmented oversight from multiple regulatory agencies, export rejections, and limited support, many farmers are stepping away from turmeric cultivation. Could a National Turmeric Board provide the much-needed relief?

Fragmented Oversight and Rising Costs

A recent survey of 262 turmeric farmers and 43 Farmer Producer Organizations (FPOs) reveals that compliance costs have surged significantly. Farmers must navigate standards set by multiple agencies, including the Spices Board, APEDA, FSSAI, and BIS. These bodies operate independently and regulate only parts of the turmeric value chain, leaving gaps and redundancies that increase costs.

Testing fees add another layer of burden, ranging from $1,18 in government labs to $49,57 in private labs for comprehensive analysis. Compounding the issue, most labs are urban-based, forcing farmers to bear additional logistical expenses. Small producers find it especially challenging to comply with these requirements, further alienating them from the global value chain.

Minimal Returns on High Investments

Despite adhering to strict compliance protocols, farmers frequently face export rejections. Between 2019 and 2024, the EU's Rapid Alert System for Food and Feed (RASFF) reported 16 rejections of Indian turmeric for contaminants like ethylene oxide and chlorpyrifos. Similarly, the USDA recorded 42 rejections between 2017 and 2024.

Such setbacks discourage farmers from exporting through formal channels. Instead, they opt to sell domestically to traders at lower prices, bypassing FPOs and cooperative societies. The fragmented regulatory framework exacerbates this problem, as government agencies often undermine each other’s processes. For instance, APEDA recently suspended Sikkim’s State Organic Certification Agency, adding uncertainty to an already convoluted system.

Can a National Turmeric Board Solve the Problem?

The idea of a National Turmeric Board, proposed by Prime Minister Narendra Modi, remains unrealized. This body could have addressed these challenges by unifying standards, streamlining certification, and supporting R&D. Farmers could have benefitted from centralized training, knowledge-sharing platforms, and capacity-building initiatives. Without such a board, they continue to struggle to meet global benchmarks, leaving India’s turmeric industry fragmented and underperforming.

Steps to Reduce Costs and Enhance Capacity

Streamlining the compliance process and building farmer capacity can significantly enhance their income. Some actionable measures include:

1. Strengthening Laboratory TestingExpanding access to decentralized labs with field sample collection can reduce logistical costs. Standardized testing across labs would minimize discrepancies, ensuring consistent results that boost buyer confidence and reduce export rejections.
2. Subsidizing Certification CostsOffering subsidies for third-party certifications tailored to farm size or production volume can incentivize farmers to pursue global standards, increasing their market reach.
3. Unified Training ModulesA comprehensive, customizable training program is crucial. Training agricultural officers and cooperative leaders first ensures they can disseminate knowledge effectively to farmers.
4. Implementing Traceability SystemsIntroducing farm-to-market traceability through technology partnerships can align with export market requirements, fostering transparency and trust.

A Unified Approach is Key

Establishing a single regulatory body or integrating existing agencies under a unified framework could reduce compliance costs and encourage value chain participation. A National Turmeric Board may still be an option, but only if it integrates activities across regulatory bodies and provides cohesive support to farmers.

Conclusion: Focus on Simplification and Support

Reducing regulatory fragmentation and compliance costs is essential for improving turmeric farmers’ income. Whether through a dedicated National Turmeric Board or a unified export authority, India must streamline processes and build capacity to unlock the full potential of its turmeric industry. For now, farmers may need to focus on domestic markets while waiting for policy reforms to make the global stage more accessible.





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