Erode, July 21 (IANS): Turmeric prices in Tamil Nadu’s key trading hub of Erode have surged close to ₹20,000 per quintal, driven by shrinking market arrivals, strong buying interest and concerns that drought conditions could reduce cultivation in the next season. The finger variety of turmeric touched ₹19,779 per quintal on Monday, up sharply from ₹15,199 on June 19 and around ₹14,000 in April. The bulb variety also recorded a steady rise, increasing from ₹14,000 per quintal in April to ₹17,632. Traders attribute the rally to tightening supplies and expectations of lower production, with inadequate monsoon rainfall raising concerns over the acreage that will be brought under cultivation. They warned that prices could climb further if rainfall remains below normal.
According to M. Sathyamurthy, Secretary of the Erode Turmeric Merchants and Godown Owners’ Association, traders expect reduced cultivation next season due to poor water availability and have started building inventories in anticipation of a supply shortage. He said fresh arrivals in major turmeric-producing markets, including Erode, Andhra Pradesh, Telangana and Maharashtra, have almost ended, with the next major harvest expected only in February 2027. Sathyamurthy added that adequate monsoon rains could stabilise prices, while a prolonged drought may further tighten supplies and push rates higher. Farmers, however, said they are unlikely to benefit from the current rally, as most had already sold their produce before prices surged. Manirajan, a turmeric farmer from the Lower Bhavani region, said growers had little opportunity to capitalise on the price rise. Meanwhile, K.R. Sudandhirarasu, President of the Tamil Nadu Small and Micro Farmer Association, said concerns over El Niño and inadequate irrigation continue to discourage cultivation, adding that traders holding large stocks are expected to benefit the most from the current price increase. Prices had previously crossed ₹21,000 per quintal during the 2024 rally.