AP turmeric farmers stop sales as prices dip

Turmeric farmers in Andhra Pradesh have stopped selling their produce in the market yards of Duggirala, Nizamabad, Warangal and Cuddapah, with the prices continuing to decline. Sporadic incidents of farmers' unrest have been reported in some parts of the state over the falling prices.

They lamented that the current market rates of Rs 1,700-1,900 a quintal in Duggirala and Nizamabad would put them to a loss of Rs 20,000 an acre. They feared that the downward trend in prices that began 8 months ago would continue to touch the rock-bottom prices of 1991 at Rs 1,000-1,200 a quintal.

Meanwhile, bumper crop in other states has led to an excess output of 10 lakh bags (70 kg each), pushing up the national output to 49.25 lakh bags, well above the estimated production.

Andhra Pradesh may see a drop in the crop by about 40,000 bags to 26.5 lakh bags due to lower yields. The last year's cyclone damaged the crop quality too. With fresh turmeric crop set to flood the markets in Andhra Pradesh from the third week of April, the prices are likely to crumble further by Rs 300-400 a quintal.

Contrary to the situation in Andhra Pradesh, prices look up in other states, as farmers received Rs 1,900-2,200 a quintal in Erode (Tamil Nadu) and the highest of Rs 2,200-2,500 in Sangli (Maharashtra). Turmeric in Maharashtra's Rajapur has been adjudged as the best crop and the crop in Salem (Tamil Nadu) is said to be best suited for making turmeric oil.

Turmeric sales across the country in 2006 (till July) fetched farmers Rs 1,900-2,300, Rs 2,000-2,750 in 2005, Rs 2,300-3,150 in 2004, Rs 2,000-2,550 in 2003 and Rs 1,750-2,300 in 2002.

Andhra Pradesh farmers hoped that the state government agency, AP Markfed, would come to their rescue and buy the crop at prices paid in Sangli.

The government, however, had not announced any support price. The state agency made some token purchases at market rates, said a market source.

J V Krishna Rao, a farmer leader, appealed to the state agency to separate fresh turmeric into three grades depending on quality and offer Rs 2,500, Rs 2,300, Rs 2,100 a quintal, respectively.

If the Markfed bought 4-5 lakh bales at Duggirala, Cudappah and Nizamabad, it would force private traders to go for brisk buying at reasonable prices, he added.

He said the state's farmers employed age-old methods of cooking turmeric crop. In Tamil Nadu and Maharashtra, their counterparts applied steam for the same purpose, which gave them an edge over the state's farmers in the crop quality.