Turmeric output to rise in FY09

Traders expect the timely progress of monsoon to encourage farmers to increase turmeric acreage. According to Agricultural Meteorological Division, the crucial southwest monsoon is progressing rapidly across the country and good rains will be favourable for the kharif sowing.

"Turmeric crop acreage in Erode and the surrounding regions, in Tamil Nadu, is seen rising over 45 per cent in 2008-09," Subhash Chandra Gupta, a local trader, said.

Satyanarayan Sabu, a Nizamabad-based trader, also expects turmeric acreage in Andhra Pradesh to increase by 15-20 per cent. However, it is difficult to give an estimate as sowing has just started, he said.

Spot price
"Realisation has almost doubled due to higher spot prices, prompting turmeric growers to cultivate more this year," said Gupta. The prices have almost doubled in the last one year due to lower production and firm overseas demand, especially from the Gulf countries.

At present the prices, on an average, rules at Rs 3,800-4,200 a quintal, compared with Rs 1,800-2,000 year ago. However, some traders are of the view that the increase in cost of cultivation may limit the sharp increase in acreage.

In 2007-08, turmeric output is estimated to be around 4.2 million bags, down from 5.4 million bags in 2006-07. The decline has been mainly attributed to unfavourable weather conditions. India is the largest producer and exporter of turmeric and accounts for about 90 per cent of the total world production.