Erode, July 21 (IANS) Turmeric prices in Tamil Nadu’s key trading hub of Erode have climbed close to ₹20,000 per quintal once again, driven by dwindling arrivals, strong buying interest and growing concerns over drought affecting the next cultivation season.
Traders say prices could rise even further if monsoon rains continue to remain inadequate. The price of the finger variety of turmeric touched ₹19,779 per quintal in the Erode market on Monday, marking a sharp increase from ₹15,199 recorded on June 19.
Market data also showed that the same variety was trading at around ₹14,000 per quintal on April 20.
The bulb variety has followed a similar trend, rising from ₹14,000 per quintal in April to ₹17,632 on Monday.
Market participants attribute the rally to tightening supplies and expectations of reduced production in the coming year. Drought conditions prevailing in several turmeric-growing regions, including Erode, have raised concerns among traders and farmers over the acreage likely to be brought under cultivation.
M. Sathyamurthy, secretary of the Erode Turmeric Merchants and Godown Owners’ Association, said traders anticipate lower cultivation next season because of inadequate water availability.
Expecting a supply shortage, many wholesalers have already begun stocking turmeric, pushing up demand even as arrivals remain limited.
He pointed out that fresh arrivals in major turmeric markets such as Erode, Andhra Pradesh, Telangana and Maharashtra have almost come to an end.
The marketing season for newly harvested turmeric generally runs from February to June, with the next major arrivals expected only in February 2027.
Sathyamurthy said the price trend in the coming months would largely depend on rainfall. If the region receives adequate rains, prices are expected to stabilise. However, a prolonged drought could further reduce cultivation and send prices even higher.
Farmers, however, say the current price rally offers limited relief. Manirajan a turmeric farmer of lower Bhavani area, said most growers had already sold their produce before prices reached the current levels, leaving little opportunity to benefit from the surge.
K.R. Sudandhirarasu, president of the Tamil Nadu Small and Micro Farmer Association, warned that concerns over El Niño and inadequate irrigation continue to discourage cultivation.
While prices remain attractive, he said many farmers lack sufficient water to raise the crop, meaning the biggest gains are likely to accrue to traders who continue to hold large stocks. Prices had previously crossed the ₹21,000-per-quintal mark during the 2024 rally.
—IANS
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