Turmeric price hits Rs 20,799 per quintal in Erode amid lower production

CHENNAI: Turmeric prices in Erode have surged to Rs 20,799 per quintal, rising by nearly Rs 2,800 in the past two weeks, as reduced cultivation and declining stocks contribute to tighter market supplies.

Finger Turmeric fetches Rs 20,799

According to a Daily Thanthi report, at the auction held on Tuesday (October 13) at the Erode Cooperative Marketing Centre, finger turmeric fetched between Rs 19,419 and Rs 20,799 per quintal, while bulb turmeric was sold for Rs 17,849 to Rs 19,111 per quintal.

Turmeric prices have risen steadily from around Rs 15,000 per quintal at the beginning of last month. The price increased from Rs 17,969 on the first of the month to Rs 20,799 on Tuesday. In just two weeks, the price rose by nearly Rs 2,800 per quintal.

Cultivation falls by half

The price surge comes amid a decline in turmeric cultivation in Erode district, Tamil Nadu's leading turmeric-producing region. Cultivation is estimated to have fallen by half compared with last year, primarily due to inadequate rainfall and insufficient irrigation water.

Water from the Bhavanisagar dam is normally released into the Lower Bhavani, Thadapalli-Arakkankottai and Kalingarayan canals to irrigate thousands of acres in the district. However, insufficient water availability in the dam has prevented the release of irrigation water this year, affecting turmeric cultivation.

Declining stocks push prices up

With production expected to be lower and farmers' turmeric stocks declining, farmers are bringing their stored produce to market as prices continue to rise. Reduced supply has contributed to the upward trend in turmeric prices.

1,435 bags sold at auction

A total of 2,425 bags of turmeric arrived for auction at the Erode and Perundurai regulated markets and Erode cooperative marketing centres on Tuesday. Of these, 1,435 bags were sold. No turmeric arrived at the Gobi Cooperative Marketing Centre for auction.

Last year, newly harvested turmeric arriving in July fetched a maximum price of Rs 19,779 per quintal.