Coimbatore (PTI): With prices of turmeric expected to soar from Rs 4,300 to Rs 4,700 per quintal in July 2009,the farmers have been advised to stock their product till June.
Despite a slight increase in area under turmeric cultivation in Erode district, the lower carry over stocks and production estimates and good domestic and export demand would keep the prices high, according to an analysis by Domestic and Export Market Intelligence Cell (DEMIC) in Tamil Nadu Agricultural University.
As prices would hit its peak in July, turmeric could be stored for a few months and sell later, so that the farmers would get better yield.
The product flow from Karnataka would start in January and extend till March and according to trade sources, this year arrival from Mysore was less compared to last year.
In Nizamabad market, arrivals were staggered because of the restrictions for the green rhizomes to the market yard. The carry over stock for 2008 was estimated to be around five to six lakh bags (each 75 KGs) and the prices touched the historic high of Rs 4,300 per quintal in July 2008, while it was only Rs 2,870 in January.
Quoting trade sources, DEMIC said the area under turmeric plantation in Erode district, the biggest tumeric market in India, increased to some extent.
In Andhra Pradesh, the area sown under turmeric had reduced by 20 per cent, which resulted in lower production.
Even though better prices prevailed last year, the delayed monsoon, increased cost of cultivation, labour and water problems made the farmers to shift from turmeric to other short duration crops like maize and soyabean, the cell said.
Since India contributed to 60 per cent of the world's turmeric trade, Indian production and prices would affect the global trade to a greater extent. Indian export during April- January 2008-09 were 47,000 tonnes, which was 15 per cent higher than the corresponding period last year.
When Andhra Pradesh, Tamil Nadu and Karnataka jointly accounted for 82 per cent of the total production of turmeric in India, other states like Maharashtra, Orissa, Assam and Kerala also cultivated it over a wide area.
Source : The Hindu