AP Markfed promises better price for turmeric

Giving solace to the turmeric farmers of Nizamabad, Duggirala, Kesamudram and Kadapa, who have been agitating for a fair price, the Andhra Pradesh State Cooperative Marketing Federation (AP Markfed) has announced that it would start procurement of turmeric from these markets from Monday.

"Turmeric farmers have been demanding that the Centre announce a minimum support price (MSP) of Rs 4,000 per quintal. However, this price cannot be given as demanded and the government is unlikely to provide an MSP. Hence, we have decided to intervene and procure turmeric from these marketyards. We will ensure that the farmers get better remunerative price than that offered by traders, which is hovering between Rs 1,850 and Rs 2,500 per quintal in Nizamabad at present," Ponnam Prabhakar, chairman of AP Markfed, told mediapersons here on Wednesday.

"Market arrivals of turmeric have already reached their peak and hence we will initially commence the procurement process from Nizamabad," he added.

According to him, the national production of turmeric during 2006-07 was 56 lakh bags (70 kg per bag), of which Andhra Pradesh's contribution was 26 lakh bags, while Tamil Nadu, Maharashtra and Orissa accounted for 16 lakh, 5 lakh and 1.25 lakh bags respectively. Last year's closing stock at national level was 6.25 lakh bags.

"In view of higher supply than the demand for indigenous consumption and exports, which is around 40 lakh bags during 2006-07, the futures trade prices are expected to remain depressed throughout the year with the expected closing stocks of around 16 lakh bags," Prabhakar said.

In Andhra Pradesh, the turmeric production during 2006-07 was 15 lakh bags in Nizamabad, 5 lakh bags in Kesamudram, 4 lakh bags in Duggirala and 1.5 lakh bags in Kadapa. "Last year's stock of about 2.50 lakh bags is lying with the farmers and traders in Andhra Pradesh," he added.

Prabhakar said that the Markfed, which is set to celebrate its golden jubilee on March 23, is proposing to take up construction of new godowns of 1,000-2,000 metric tonne capacity in all the revenue divisional headquarters in the state at an investment of Rs 20 crore each.

"Proposals have ben made to the district collectors concerned for alienation of government land," he said. Markfed currently has 72 own godowns each with 1,000-metric tonne capacity.

Markfed is targeting to achieve a turnover of Rs 250 crore in the current financial year, as against Rs 221.40 crore achieved during 2005-06.