Indian Turmeric Production Likely to Decline by 10-15% Due to Weather Impact
Indian turmeric production is projected to be
10-15% lower this season. Primarily due to unfavorable weather conditions and crop diseases in the
Nanded region. Reports of
small rhizomes and
crop rot have raised concerns among farmers and traders. Despite an increase of
330,000 hectares in cultivation area, unseasonal rains have negatively impacted productivity. The total production is expected to remain close to last year's
1.08 million tonnes, with a potential fluctuation of
3-5%.
Early Arrivals in Key Markets
The arrival of the
new turmeric crop has started in
Nizamabad and
Hingoli Mandi, which has prevented significant price growth. The early supply has moderated market sentiment, and traders are watching how the crop quality and volume will impact future prices.
Export and Import Performance of Turmeric
Turmeric exports between
April to November 2024 rose by
9.80%, reaching
121,601 tonnes. However, export performance in
November 2024 showed mixed trends:
- November Exports: 48.22% year-on-year growth, but down 20.18% from October 2024.
- Imports: Turmeric imports increased by 101.80% to 18,937.95 tonnes during the same period. However, November imports declined by 34.84% from October and by 2.65% year-on-year.
Turmeric Trade Data (April-November 2024)
Limited Upside Expected in Turmeric
While the new crop arrivals have stabilized prices for now, the 10-15% expected reduction in production might support prices in the medium term. The market will remain cautious as the quality of the arriving crop and export demand will play a crucial role in determining price trends. With export growth showing strength, there is a possibility of price stability if domestic supply meets market demand.