Exports of turmeric in 2008-09, despite the global economic recession coupled with higher prices of the commodity consequent to short supply, are expected to cross the set target of 50,000 tonnes in quantity and Rs 160 crore in value.
Total shipments during April-February of last financial year touched 49,000 tonnes valued at Rs 226.30 crore as against 44,360 tonnes valued at Rs 137.93 crore in the corresponding period in 2007-08. Going by the trend, the total exports would have crossed the target, official sources told Business Line. The average unit value in 2008-09 has shot up to Rs 46.18 a kg from Rs 31.09 a kg in 2007-08 due to short supply.
National output
The total national output of turmeric which was at 5.43 lakh tonnes from 1.34 lakh hectares in 1996-97 had gone up to an estimated 7.6 lakh tonnes from around 1.7 lakh hectares in 2009, they said. There has been a mismatch between the demand and supply in 2008-09 with the latter dropping due to fall in area following shift to other crops and erratic weather conditions.
Strong domestic demand coupled with a decline in production and a squeeze in availability from other origins due to unfavourable weather conditions, have pushed up the demand and a consequent price rise in 2008, they pointed out.
Indigenous production this year has been revised to 40 lakh of 70-kg bags against 43 lakh bags projected earlier for 2009, market sources said.
curcumin content
In addition, the carryover stock, according to them, is estimated at 1.2 lakh tonnes this year as against 1.6 lakh tonnes last year. Hence, there is a likely decline in the total availability and consequently the prices might be ruling at higher levels this year, they pointed out.
India is the world's largest producer of turmeric known as "Indian saffron" and considered the best because of its high curcumin content. It is used in "diversified industries as condiment, as flavouring and colouring agent and principal ingredient in curry powder apart from in pharmaceuticals and toilet soaps etc", industry sources said adding "its diversified use has pushed up the demand for turmeric of late in India and overseas".
Oleoresin extracted from turmeric is used in brine pickles, to some extent in mayonnaise, relish formulations, in non-alcoholic beverages, gelatins, butter and cheese etc.
"Curcumin extracted from turmeric is used as a dye in textile industry, in cosmetics, preparation of medicinal oils, ointments and poultice. It is stomachic, carminative, tonic, blood purifier and an antiseptic. The aqueous extracts have bio-pesticidal properties," the sources said.
Additionally, anti-cancer and antiviral properties of turmeric may also have increased its demand from pharmaceutical industry, they added.
Turmeric is cultivated in Andhra Pradesh, Maharashtra, Orissa, Tamil Nadu, West Bengal, Karnataka and Kerala.
kharif crop
It is a kharif crop with a gestation period of nine months depending on the variety. Sowing normally takes place in July and it is harvested from December to February.
The peak arrival period is March-April, they said. The global output or turmeric is estimated at 11-12 lakh tonnes and of which, India contributes 78 per cent while its share in the world trade is 60 per cent. Other major producers are China, Myanmar, Nigeria, Bangladesh, Pakistan, Sri Lanka, Taiwan, Burma and Indonesia.
India is the major exporter of turmeric in the world trade followed by Thailand, other South-East Asian countries, Pacific Islands, Central and Latin American countries and Taiwan.
It is shipped out in the form of dry turmeric, fresh turmeric, turmeric powder, curcuminoids, dehydrated turmeric powder, oils and oleoresins. The highest ever exports were in 2006-07, when the country shipped out about 52,000 tonnes of turmeric after 44,627 tonnes in 2000-01.
According to the Spices Board, major share of exports goes to the UAE accounting for 18 per cent, followed by the US (11 per cent), Japan ( nine per cent), Sri Lanka, the UK, Malaysia together accounting for 17 per cent.
Source : Business Line