India: Turmeric exports surge on higher demand

Good demand for Indian turmeric in the world market has pushed up exports of the spice during the first eight months of the current fiscal despite substantial increase in its price to Rs 46.43 a kg from Rs 30.36 a kg in the same period a year ago.

Shipments of turmeric have already surpassed the export target of Rs 160 crore in April – November 2008. In volume, it was 36,500 tonnes against 33,390 tonnes valued at Rs 101.36 crore in the year-ago period. The target set for turmeric exports during the current fiscal is 50,000 tonnes valued at Rs 160 crore.

The unit value went up to Rs 46.43 a kg this year from Rs 30.36 a kg in Apr-Nov 2007, Spices Board sources told Business Line.

Domestic demand

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 is projected at 45-48 lakh of 70-kg bags against 40-42 lakh bags in 2008. Added to this, the carryover stock is estimated at 4-5 lakh bags raising the total availability in 2009 to 49-53 lakh bags, sources said.

“This would still be short of the output of 54 lakh bags in 2006-07,” they said, adding that the carryover stock from 2008 would also be comparatively less this year.

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.

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', industry 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. 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 (9 per cent), Sri Lanka, UK, Malaysia together accounting for 17 per cent.


Source: moneycontrol.com

Publication date: 1/8/2009

respond to this article    print

Receive the daily newsletter in your email for free | Click here

 

<< back | www.freshplaza.com