Turmeric prices have experienced a notable increase of about 80% year-on-year and are poised to rise further, largely due to a decline in sowing by at least 20% this year. This reduction in production is evident in various markets. For instance, in the Erode market, the production is projected to be only 65-70% of last year's, while in Nizamabad, output is reported to be 20-25% lower. The current market prices reflect this trend, with the modal price of the finger variety turmeric in Erode's agricultural produce marketing committee yard standing at ₹11,504 per quintal, up from ₹6,384 a year ago. In Nizamabad, Telangana, the spot price is ₹13,943, with the futures market price for April closing at ₹15,540.
Experts attribute the decrease in turmeric sowing to farmers opting for more lucrative crops like oilseeds and cotton, leading to a significant downturn in turmeric production. Estimates for 2024 predict turmeric production to be around 4.45 lakh tonnes, a 15.40% reduction from the previous year's 5.26 lakh tonnes. The new crop's arrival in Nizamabad has begun, with an average of 1,200 to 1,300 bags, albeit with a high moisture content of 15-25%. Tamil Nadu is expecting its arrivals to start around mid-March. The Ministry of Agriculture and Farmers’ Welfare's third advance estimates for the 2022-23 season placed turmeric production at 11.69 lakh tonnes.