Market Survey

By: Dr M. ThaMaraikannan, G. PalaniaPPan anD S. DharMalinGaM

TURMERIC ExpoRTs soaR Though many specifications regarding quality control have been announced by most of the importing countries, the quantity as well as the value of Indian turmeric export has increased manifold due to the efforts taken by the spices Board.

Turmeric is being used as a spice from the very early period of recorded his-tory because of its colour-ing, flavour and digestive

properties. It is an important and ancient spice known to have existed and been used even during Vedic and Biblical times.

Turmeric, botanically called ‘Curcuma Langa,’ is essentially a crop of the tropics, with cultivation extending from India to Indo-China, East Indies, a portion of China and Sri Lanka. It is the root of a plant of the ginger family and continues to be extensively used as a versatile spice throughout India, the Middle East and Far East in both vegetarian and non-vegetarian food preparation.

The origin of turmeric is not ex-

actly known. According to Watt, sev-eral spices of ‘Curcuma’ are native of India but turmeric may be of Chinese or Cochin-Chinese origin. According to the Dictionary of Economic Prod-ucts, turmeric is supposed to have originated from South East Asian region. The cultivated forms have become naturalised in some areas of north-eastern parts of India and the Island of Java. The crop has now become widely distributed through-out the tropics but its cultivation as a spice is largely confined to India, East Asian countries and Indonesia.

Uses of turmericThe principal use of turmeric

worldwide is as a major ingredient in curry powder, but it is also used

in other spice mixes. It was treas-ured by the ancients not only for its fragrance and flavour but also for its brilliant yellow colour. It is men-tioned in the ‘Vedas’ that turmeric had been used at the time of mar-riage, worship and other religious ceremonies of the Hindus. Even now it is considered a sign of good omen and given prominence in functions, festivals, etc. The important uses of the turmeric are briefly described here in terms of its medicinal value, food value and industrial value.

Medicinal value. Turmeric has been used as an ingredient in Ay-urvedic and Unani system of medi-cine in India from ancient times. It is claimed to be a stomach tonic, blood purifier, antihistamine, antacid, anti periodic and carminative. The medic-inal properties of turmeric have been known to people for a long time. It is used both internally and externally in acute and chronic skin diseases. With boiled milk, it is used for the treatment of sore throat and common colds. It is also claimed to have cura-tive properties of afflictions of the liv-er and gall bladder. In small doses it functions as an antacid, while in large doses it acts as an antispasmodic.

Food value. Turmeric is a ver-satile commodity with many uses, though outside India it is known only as a condiment and colouring agent, used as a flavour and colouring in preparing mustard, meat dressings and salads. It is one of the principal ingredients of ‘curry powder,’ which is a mixture of many spices chiefly used

Market Survey

as a flavouring agent and for improv-ing digestion. It is added not only for colouring but also for increasing the flavour and hotness of the food. It is used in pickles as a preservative and also as a colouring matter for butter, cheese and other foodstuffs.

In most of the Asian countries, turmeric is used as a food additive in almost all vegetables, meat and fish preparations.

Industrial value. In the textile industry, turmeric was used as a dye for silk, cotton and wool, though it is no longer used as a dye due to lack of fastness. In the cosmetics industry, it is used in producing facial and skin creams. Similarly, in the pharmaceu-tical industry, it is extensively used in preparations of indigenous medi-cines. Turmeric is also an important spice used in culinary preparations.

Important marketable varieties of turmeric

Alleppey turmeric. It is pro-duced in Kerala and marketed in Alleppedy having been grown in the surrounding districts, particularly the Thodupuzha and Muvattapuzha areas. Alleppey turmeric is deep yel-low to orange-yellow in colour and has a higher content of the colour-ing principle curcumin (up to 6.5 per cent) than other types of turmeric. It is the preferred variety of turmeric in the USA and marketed in the un-polished form.

Madras turmeric. It is mostly grown in Tamil Nadu and marketed from Erode. This variety is grown in Erode, Salem, Coimbatore, Dhar-mapuri and Tiruchirappalli districts of Tamil Nadu. The rhizomes are mustard yellow in colour and have a curcumin content of 3 to 3.5 per cent.

Madras turmeric is the preferred type in the United Kingdom and in much of the European continent. Most turmeric is marketed in pol-ished form but a considerable pro-portion remains unpolished.

Rajpuri turmeric. It is grown in Maharashtra state and marketed from Mumbai. It is sometimes re-

garded as a superior variety to Ma-dras turmeric, which it resembles in characteristics, and possesses a similar curcumin content of 3.5 to 4 per cent. It is mostly marketed in polished form and is the main vari-ety exported to Japan.

Within India, the Rajpuri type is produced in greater quantities than any other variety and accounts for 15 to 20 per cent of the total turmeric production. On the other hand, Alleppey variety of turmeric accounts for only one per cent of the total Indian production. All the Madras varieties taken together ac-count for more than 50 per cent of production.

Nizamabad turmeric. It is grown in Andhra Pradesh state, particularly in Guntur, Karimnagar, Cuddapa and Nizamabad. The col-our content of this turmeric is pale yellow and it is not more than 2 per cent of curcumin content.

This variety is mostly sold in Dubai market. It is purchased for grinding and then mixing with other turmeric varieties. Normally, it has a

finger length of 6.7 cm, with girth of 7.2 cm. The total weight of the finger is about 21.07 grams.

production of turmeric in India

Turmeric is a spice obtained from the rhizomes of Curcuma—a peren-nial plant of the ginger family prob-ably originating in South India but now grown widely throughout Asia. It is also cultivated elsewhere, espe-cially in some American countries and on the Caribbean and Pacific Island. It is a tropical crop that can be grown on different types of soils both under irrigated and rain-fed conditions. Rich loamy soils having good drainage are ideal for the tur-meric crop.

In order to cultivate turmeric or-ganically, an isolation distance of 25 metres wide all around is to be left in a conventional farm. It being an annual crop, the conversion period required is two years. Turmeric can be cultivated organically as an inter-crop with other crops provided or-ganic methods of cultivation are fol-lowed for all the companion crops.

India has a near monopoly in turmeric production. It is the prin-cipal producer of turmeric followed by China, Pakistan, Thailand, Tai-wan and Burma. India is also the world’s largest exporter of turmeric, accounting for more than 50 per cent of the world trade.

Table I shows the increasing trend in turmeric production in In-dia from 1991 to 2006. In 1991, the turmeric production in India was 373,200 tonnes as against 510,700 tonnes in 2006, which represent an annual growth of 36.84 per cent dur-ing this period.

Major turmeric growing states in India

The area under turmeric cultiva-tion and quantity of turmeric produc-tion in major turmeric growing states are shown in Table II. The major tur-meric-cultivating states in India are

Table I

Turmeric Production in india

(tonnes)

Year Production

1991 373,2001992 407,7001993 707,4001994 659,4001995 462,9001996 528,9001997 549,2001998 598,4001999 542,3002000 496,2002001 542,8002002 562,5002003 578,1702004 554,0002005 532,1002006 510,700

Source: Spices Statistics, Spices Board, Cochin

Market Survey

Andhra Pradesh, Maharashtra, Oris-sa, Tamil Nadu and West Bengal.

Table II shows the respective state-wise average values of cultivation area and production of turmeric for the pe-riod 2000-01 to 2005-06. These average results indicate that Andhra Pradesh produces the maximum quantity and also has the largest area of turmeric cultivation. Next to it are Orissa and Tamil Nadu as significant turmeric cultivation states in India.

prospects of turmeric production in India

Next to cotton and sugarcane, turmeric is an important commer-cial crop grown in India. The analy-sis of secondary data related to area, quantity and value of turmeric pro-duction in India shows an encour-aging trend, as the climatic condi-tions, fertility of the soil, rainfall and cultivation practices are highly favourable in the majority of states in India. The expansion of area un-der turmeric cultivation will enrich the existing quantity of turmeric production in the country. Though price fluctuations may exist due to instability in the market, these can be eliminated by effective export promotional measures taken by the government. Promoting turmeric cultivation in the country will en-hance the inflow of foreign exchange and improve the economic condition of the Indian farmer.

Turmeric pricesPrice is an important aspect for

any commodity because it deter-mines the profit margin earned by the growers. Unless the growers re-ceive a price that gives them a rea-sonable margin, it cannot be expected that they will continuously go in for cultivating the respective crop. With regard to turmeric, it can be stored for more than two years, which also influences the supply to the market yard. However, the financial back-ground of the turmeric growers and availability of post-harvest financial assistance in the form of pledge loan are important factors in determining storage of turmeric in godowns.

As can be observed from the tur-meric monthly average prices in In-dia (presented in Table III), the an-nual average price kept fluctuating in the period 2001-02 to 2006-07.

Turmeric export from India

Turmeric is an important ex-portable spice for India. We have earned considerable foreign ex-change through turmeric export and the scope and environment in the international market for turmeric export have shown a significant up-ward trend. Though many countries are importing turmeric from India, Germany, Japan, the United Arab Emirates, the UK and the USA are

the major importers.The quantity and value of item-

wise export of spices from India dur-ing the period 2004-05 to 2006-07 are shown in Table IV. It is observed that turmeric has a steady and sta-ble market in the international trade compared to other spices.

Export prospectsIn the international market, the

Indian turmeric varieties are very popular among the major turmeric importers. Though many specifica-tions regarding quality control have been announced by most of the im-porting countries, the quantity as well as the value of turmeric export has increased manifold due to the efforts taken by the Spices Board, which has been established by the Government of India.

The Spices Board organises many export market surveys and efforts have been made to identify the ex-port potential for turmeric export in many countries. Many of the devel-oped countries like the USA, the UK and Japan are taking much interest in purchasing Indian turmeric due to high degree of quality conscious-ness being followed by the Indian exporters.

Export promotionIn order to augment the quantity

as well as the value of turmeric and

Table II

Major Turmeric Growing States in india(Area in hectares; quantity in tonnes)

Year Andhra Pradesh Maharashtra Orissa West Bengal Karnataka Kerala Tamil Nadu Uttar Pradesh

Area Qty Area Qty Area Qty Area Qty Area Qty Area Qty Area Qty Area Qty

2000-01 73,930 375,770 6,900 8,680 25,310 20,630 13,890 22,450 9,250 41,040 4,130 9,040 33,000 158,640 1,050 1,820

2001-02 61,680 249,490 6,770 8,510 27,140 65,830 12,790 22,030 6,710 35,600 3,560 7,900 23,640 118,260 1,160 1,980

2002-03 56,820 283,540 6,640 8,220 23,640 55,970 11,730 21,350 6,600 28,600 3,140 6,940 17,300 64,540 1,120 2,030

2003-04 58,440 320,680 6,810 8,530 23,780 56,420 12,620 24,500 5,410 26,380 2,770 5,650 16,180 67,250 1,130 2,140

2004-05 60,360 417,820 6,830 8,540 25,550 55,980 12,400 24,480 5,410 23,380 2,880 6,240 21,620 118,450 1,130 2,140

2005-06 69,990 518,550 6,760 8,427 24,020 57,090 11,844 25,089 5,410 23,680 3,384 8,237 25,970 143,380 979 4,364

Average 63,536.67 360,975 6,785 8,484.5 24,906.67 51,986.67 12,545.67 23,316.5 6,465 29,780 3,310.667 7,334.5 22,951.67 111,753.3 1,094.833 2,412.333

Source: Spices Statistics, Spices Board, Cochin

Market Survey

other spices export, the board has formulated many schemes exclusive-ly for the exporters. The guidelines and conditions of the schemes are very simple. The following are the important schemes offered by the board:

1. Schemes for technology trans-fer and process upgradation

2. Scheme for assistance of re-search and development efforts

3. Scheme for adoption of high technology in processing

4. Financial assistance for stall rent for participation in internation-al food exhibitions

5. Scheme for setting up/upgra-

dation of lab/facilitating for moni-toring pesticides residual adopting ISO 9000

6. Scheme for adopting quality control system

7. Scheme for purchase of power generator

8. Scheme for product promotion abroad

9. Scheme for packing develop-ment

10. Scheme for assistance of sales promotion tours abroad

11. Scheme for financial assist-ance for printing of folders

12. Reimbursement of air freight/courier charges for sending samples

Table III

Monthly average Domestic Prices of Turmeric in india(Prices in Rupees per Kilogram)

Year Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Average

2001-02 22.75 21.60 25.05 24.13 25.00 25.50 28.88 28.50 27.70 27.38 31.88 34.30 26.902002-03 37.88 40.00 39.40 37.50 37.70 39.75 40.63 42.00 45.75 40.00 25.51 51.10 41.912003-04 50.00 48.60 48.00 48.00 48.00 48.00 48.00 48.00 48.00 48.00 48.00 48.00 48.222004-05 48.00 54.50 55.00 55.00 55.00 55.00 55.00 55.00 55.00 49.50 47.13 49.25 52.782005-06 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 48.40 47.50 47.50 49.452006-07 47.50 47.19 45.00 45.00 45.00 45.00 40.63 40.00 40.00 37.50 35.00 34.60 41.82

Source: Spices Statistics, Spices Board, Cochin

Table IV

item-wise Export of Spices from india Item 2004-05 2005-06 2006-07 Quantity Value Quantity Value Quantity Value (million (Rs crore) (million (Rs crore) (million (Rs crore) tonnes) tonnes) tonnes)

Pepper 14,148 121.71 17,363 150.95 28,750 306.2Chilli 138,073 499.03 113,174 403.01 148,500 807.75Ginger 13,890 5986 9,411 42.96 148,500 807.75Turmeric 43,097 156.25 46,405 152.86 51,500 164.8Coriander 33,582 82.09 23,756 67.71 20,500 74.62Cumin 15,767 115.29 12,879 98.19 26,000 201.5Celery 4,297 14.5 4,165 15.01 3,550 13.21Fennel 7,590 27.5 5,725 27.82 3,575 23.8Fenugreek 14,635 27.48 15,525 34.03 8,500 26.99Cardamom 1,596 34.92 1,909 38.37 2,150 39.31Others 26,283 95.73 19,703 77.37 17,300 14.21Total 348,524 2,350.52 350,363 2,627.62 373,750 3,575.75

Source: Spices Statistics, Spices Board, Cochin

abroad13. Promotion of gift packs of In-

dian spices with quality logo14. Brand promotion loan15. Provision of modern clean-

ing, processing and storage facilities at terminal market

Need of the hourIndia has the potential to become

a major player in the world trade of spices. The processed forms of tur-meric exported are dry turmeric, fresh turmeric, turmeric powder and oleoresin. Even though the produc-tion in India is high, surplus is less because of higher domestic con-sumption.

Though the agricultural sector in the state has been facing difficulties since the latter part of 1990s, till re-cently, there was no serious attempt to understand the problem and take corrective measures. Efforts are needed from all concerned institu-tions for introducing incentives and loan repayment scheme for farmers, reducing interest on all agricultural loans, covering the national agricul-tural insurance scheme, increasing the scope and coverage of price sta-bilisation fund, and strengthening the agricultural extension support by the government.

Dr M. Thamaraikannan is a lecturer at Department of Commerce, while G. Pal-aniappan and S. Dharmalingam are Ph.D full-time research scholars at Sri Vasavi College, Erode, Tamil Nadu