Turmeric acreage to decline 30%

Maharashtra to defy trend

Turmeric acreage in 2007-08 is expected to decline 25-30 per cent across the country, barring Maharashtra where it is likely to increase by 10 per cent.

A major reason for the decline is that farmers in Andhra Pradesh, who have incurred losses on last year's crop, are reportedly switching over to black gram this year.

It would come down by 40 per cent in Duggirala, 25-30 per cent in Nizamabad and Warangal, and 25-30 per cent in Erode.

Consequently, turmeric harvest in the country may come down to 40 lakh bags this year as against 52-53 lakh bags achieved last year.

In Duggirala, farmers would gather only 2 lakh bags against 3.5 lakh bags they reaped in 2006. Despite fixing the price of NCDEX godown turmeric at Rs 2,000 per quintal all over AP , local demand has been low. The price is at par with Nizamabad variety, which is the best quality available and is finding immediate buyers.

However, the crop in NCDEX godowns in Duggirala, Kadapa, Warangal and other centres has not found suitors as its quality is no match for the Nizamabad crop. This had led to hoarding of the crop at the godowns. At Warangal, about 300 lorry loads of turmeric is waiting for buyers.

Traders hope that the NCDEX will intervene and solve the problem in a fortnight. Last week transactions took place in Nizamabad turmeric only, reducing the demat stock from 3,671 tonnes to 2,978 tonnes. However, the Warangal stock went up from 4,954 tonnes to 5,015 tonnes. Duggirala and Erode stocks have remained the same at 30 tonnes and 791 tonnes respectively.

Alarmed at the situation, the NCDEX had called for an emergency meeting of its national Turmeric Product Committee in Hyderabad. The committee has decided to revert to the old system of prices.