Indian Turmeric Lower Production Pushes Prices Higher

Turmeric production in India has dropped significantly this year, pushing prices up by 1.9% to USD 1,59 per kg. Despite an increase in the cultivated area to 0.33 million hectares, overall output has fallen due to unseasonal rains affecting crop yields.

According to government data, turmeric production has declined by 10-15%, and experts suggest that erratic weather conditions have prevented an expected increase in output.

Weather Disruptions Impact Turmeric Yield

Last year, India produced 1.08 million tonnes of turmeric. However, unfavorable weather conditions in the current season could lead to a 3-5% fluctuation in production levels. The persistent challenges in crop yield have kept turmeric supply tight, contributing to firm price trends.

Turmeric Exports and Imports Show Strong Movement

India’s turmeric exports have risen by 10%, reaching 1,22,000 tonnes in the 2024 financial year. However, a month-on-month comparison shows a 20.1% drop in exports in November compared to October in 2024. Despite this decline, turmeric exports remain 50% higher than in 2023, indicating steady global demand.

On the import front, India’s turmeric imports surged to 0.19 million tonnes in 2024, reflecting the strong demand for turmeric in both domestic and international markets.

Global Market Prices on the Rise

The price of turmeric has also strengthened in international markets, driven by tight supply and increased demand. With exports rising and production challenges persisting, the turmeric market is expected to remain strong in the coming months.

Conclusion: High Demand and Limited Supply Keep Market Strong

Despite a larger cultivated area, unpredictable weather has limited turmeric production in India. This supply-demand imbalance is keeping prices at elevated levels. As global demand remains steady and international prices continue to rise, turmeric farmers and traders should closely monitor the market for further price movements.

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