Indian Turmeric Prices Skyrocketed 90.04% YoY in early Mar-24 Amid Supply Shortages

The price of Indian turmeric has surged by 90.04% YoY in early Mar-24, reaching USD 1.44/kg compared to USD 0.76/kg in 2023, with an 80% MoM increase from USD 0.80/kg in Feb-24. This rise is due to reduced arrivals of fresh turmeric and uncertainties in cultivable areas, compounded by adverse weather conditions expected to decrease production by 30 to 35% YoY.
The price of Indian turmeric has experienced a substantial year-over-year (YoY) surge, increasing by 90.04% in early Mar-24, reaching a peak price of USD 1.44 per kilogram (kg) compared to USD 0.76/kg during the same period in 2023. Additionally, the price has seen a significant month-over-month (MoM) increase, rising by 80% from USD 0.80/kg in Feb-24. The recent surge in Indian turmeric prices is due to various factors, including a reduction in the arrival of fresh turmeric and uncertainty surrounding cultivable areas. Adverse weather conditions in 2024 are expected to significantly reduce production by 30% to 35% YoY, reducing yields per hectare (ha). Furthermore, India's total turmeric supply forecast for the 2023-24 season is 94.4 million bags, but production has dropped to 60 million. Despite expectations of increased consumption and exports, demand is projected to outpace supply, leading to a decrease in closing stocks. Regarding export demand, major importing countries have witnessed a decline in demand post-COVID, partly due to the higher prices of Indian turmeric. Despite India maintaining 80% of global market shares in turmeric production, competition from other producer countries offering turmeric at lower prices has affected India's export competitiveness.