Rainfall Fears For Indian Turmeric Crop

Deficient rainfall in the main Indian turmeric growing states has delayed cultivation and farmers fear that acreage may fall this year if weak monsoon persists, traders and analysts said.

Andhra Pradesh, Tamil Nadu and Karnataka in southern India and Maharashtra in the west are main producers of turmeric where lower rains have delayed sowing by a fortnight, Naresh Shah, a trader based in Sangli in Maharashtra, said.

"Everybody is waiting for rains. If they remain weak for the next fortnight, then acreage under turmeric will certainly go down," he said.

Turmeric cultivation starts in June, when monsoon reaches the southern and western states of India.

Lower rainfall may force farmers to opt for corn and soybean crops, which require less water than turmeric and are also giving good returns, said Punam Chand Gupta, a large trader and exporter based in Nizamabad, Andhra Pradesh.

"Already we have seen some diversion in Andhra Pradesh," Gupta said.

The arrival of monsoon three days ahead of schedule in turmeric producing states had led traders to expect higher acreage, helping farmers get higher prices.

The price of turmeric in the Nizamabad spot market was around 4,100 rupees per 100 kg this year, almost double the 2,100 rupees that prevailed in June 2007, according to data compiled by National Commodity and Derivatives Exchange (NCDEX).

Acreage in Tamil Nadu, where rains were higher than other turmeric growing states may rise, but Maharashtra, Karnataka and Andhra Pradesh are likely to see a decline, said Nandkishore Sarda, a trader based in Sangli.

In June 1 to July 2 period, central parts of Maharashtra, northern Karnataka and coastal Andhra Pradesh received lower rainfall compared to long term average, while Tamil Nadu rains were higher, the India Meteorological Department data showed.

Turmeric is a delicate crop and needs to be cultivated and harvested with care to avoid damage to the rhizomes. After the harvest, these are boiled and dried before reaching the markets, making it labour intensive.

Source: Reuters