India’s Turmeric Sector Faces Hurdles Despite Global Leadership

India, holding over 62% share in the global turmeric trade, is grappling with significant challenges that are affecting the sector's growth. According to a recent study by the Indian Council for Research on International Economic Relations (ICRIER), issues such as export rejections, price volatility, and declining cultivation areas are impeding progress.

The report emphasizes that targeted interventions are necessary to stabilize turmeric production and empower farmers. Moreover, achieving the government’s ambitious goal of USD 1 billion in turmeric exports by 2030 will require strategic reforms, ICRIER noted.

Decline in Turmeric Cultivation

The ICRIER study reveals a steady decline in turmeric cultivation over the past three years. Farmers have cited multiple factors contributing to this trend. For instance, sudden market crashes and price instability have discouraged many from continuing cultivation. Furthermore, inadequate infrastructure for storage and processing, along with unfavorable weather conditions and pest infestations, has exacerbated the situation.

In addition, difficulty connecting with buyers and declining soil fertility are key reasons why turmeric cultivation has reduced. Currently, India’s turmeric cultivation spans 297,000 hectares, producing 1.04 million tonnes in 2023–24.

Export Challenges Due to Low Curcumin

Despite its dominant position in the global turmeric trade, India faces stiff competition due to low curcumin content in domestic varieties. Most turmeric in India contains 2% curcumin, falling short of the 5% or higher demanded by global markets. Consequently, India supplies only 10% of high-curcumin turmeric products.

Furthermore, India lacks mutual recognition agreements with key markets for processed and organic turmeric, which increases compliance burdens and limits trade opportunities.

Proposed Interventions to Boost the Sector

The report outlines several strategies to strengthen India’s position as a global turmeric leader. For example:

1. Subsidies: These should support third-party certification, high-curcumin cultivation, and research into value-added products.
2. Infrastructure Investments: Building better storage, processing, and quality testing facilities is essential.
3. Scaling Up FPOs: Farmer-producer organizations need to grow for better market access and bargaining power.
4. Trade Agreements: Signing mutual recognition agreements with key export markets can reduce trade barriers and enhance exports.

Conclusion

By addressing the existing challenges and fostering global collaborations, India can solidify its position as a trusted supplier of turmeric. While the path requires investments in quality standards, infrastructure, and research, the country has the potential to meet growing global demand and achieve its export targets.





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