ERODE: After a sharp rise in prices in 2024, the procurement price of turmeric in the Erode market touched nearly Rs 20,000 per quintal on Monday. Traders say prices have risen due to market demand, and may further increase if the drought situation continues.
M Sathyamurthy, secretary of Erode Turmeric Merchants and Godown Owners' Association, said, "Drought conditions currently prevail in many areas where turmeric is cultivated, including Erode. Turmeric traders foresee a drop in cultivation next year. As a result, many wholesalers and traders have already started stocking turmeric, leading to greater demand as compared to its supply.”
"Turmeric arrivals are low in key markets including Erode in Tamil Nadu, as well as in Andhra Pradesh, Telangana and Maharashtra, since the season for fresh arrivals has ended. Usually, the season for the arrival of fresh turmeric is from February to June. The next season will start in February 2027," he added.
Sathiyamuthy stated that if there is adequate rainfall in the upcoming days, there will be no significant fluctuations in turmeric prices. However, he added that if the rains fail and the impact of drought intensifies, prices would rise further.
"The price of turmeric (finger variety), which stood at `15,199 per quintal on June 19 reached `19,779 on Monday. The per quintal price of turmeric on April 20 was Rs 14,000," market sources said.
"Similarly, the price of the 'bulb' variety has also risen significantly. The price, which stood at Rs 14,000 per quintal on April 20, rose to Rs 17,632 on Monday," sources added.
C Nallasamy, president of Lower Bhavani Irrigation Farmers’ Welfare Association, said, "Price hike is good for farmers, but most local farmers have sold the turmeric they had in stock. There is high demand currently, and price is also increasing."
KR Sudandhirarasu, president of TN Small and Micro Farmer Association, said, "In the current environment, El Nino is a looming threat. Even though prices are good right now, we do not have enough water to cultivate turmeric.
There is no particular benefit to farmers in this situation. Only large traders holding stocks will benefit." Earlier, in 2024, the procurement price of turmeric crossed Rs 21,000.