Daijiworld Media Network - Erode
Erode, Jul 21: Turmeric prices have surged sharply in Tamil Nadu's principal trading centre of Erode, with rates nearing Rs 20,000 per quintal as falling market arrivals, strong stockist demand and fears of lower production due to drought continue to fuel the rally.
The finger variety of turmeric was sold at Rs 19,779 per quintal in the Erode market on Monday, a significant jump from Rs 15,199 recorded on June 19. Just a few months earlier, in April, the same variety was trading at around Rs 14,000 per quintal.
The bulb variety has also witnessed a steady rise, climbing from nearly Rs 14,000 per quintal in April to Rs 17,632 this week.
Traders attribute the price increase to shrinking supplies and concerns that inadequate rainfall could reduce turmeric cultivation in the upcoming season. Drought conditions in major producing regions, including Erode, have heightened fears of lower acreage and a possible supply crunch next year.
M. Sathyamurthy, Secretary of the Erode Turmeric Merchants and Godown Owners' Association, said expectations of reduced cultivation due to poor water availability have prompted wholesalers to increase stock purchases, resulting in higher demand despite limited arrivals.
He noted that fresh arrivals from major turmeric-producing states such as Tamil Nadu, Andhra Pradesh, Telangana and Maharashtra have almost ceased. Typically, the marketing season for freshly harvested turmeric extends from February to June, with the next major arrivals expected only in February 2027.
According to traders, the future price movement will largely depend on the progress of the monsoon. Adequate rainfall could encourage cultivation and stabilise prices, while continued dry weather may further restrict production and push prices to fresh highs.
Despite the rally, many farmers say they have gained little from the price rise. Manirajan, a turmeric grower from the Lower Bhavani region, said most cultivators had already sold their produce before prices climbed to current levels, preventing them from benefiting from the recent surge.
Echoing these concerns, K.R. Sudandhirarasu, President of the Tamil Nadu Small and Micro Farmer Association, said uncertainty over El Niño conditions and inadequate irrigation facilities continue to discourage farmers from expanding cultivation.
He observed that although market prices remain attractive, water scarcity has made it difficult for many growers to plant the crop, leaving traders holding large inventories as the primary beneficiaries of the ongoing price rally.
Turmeric prices had last crossed the Rs 21,000-per-quintal mark during the sharp market upswing witnessed in 2024.