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Contract Specifications
Commodity Name Turmeric
Basis for price quote Unpolished turmeric fingers Nizamabad quality ex- warehouse Nizamabad,  exclusive of Sales Tax/VAT
Trading unit  5 MT
Delivery unit 5 MT and multiples thereof.
Quotation / Base value  Rs per 100 KG (0.1 MT)
Tick size (minimum price movement) Rs 2 per 100 KG (0.1MT)
Delivery Logic Compulsory delivery
Delivery Center Basis : Nizamabad (up to the radius of 100 Km from the corporation/municipal limits).
Additional delivery Center(s) Sangli and Erode (up  to the radius of 100 Km from the corporation/municipal limits) with location wise premium/discount as announced by the Exchange.

Contract Specification January 2014 onwards

Turmeric is a tropical plant perennial herbs, curcuma  domestically cultivated in India since ancient time. Turmeric belongs to family Zingiberaceae and is botanically called Curcuma longa (LINN).  The plant is a herbaceous perennial, 60-90 cm high, with a short stem and tufted leaf. The lamina is green above and pale green below and has a length of 30-40 cm and width 8-12 cm. The tuberous rhizomes or underground stems of turmeric are used from antiquity as condiments, a dye and as an aromatic stimulant in several medicines Turmeric is a tropical herb and can be grown on different types of soil under irrigated and rainfall conditions. Turmeric is the boiled, dried, cleaned and polished rhizomes of Curcuma longa.

Crop Cycle:
The harvesting of this plant is done when the leaves of this plant start turning yellowish after 7 to 10 months of plantation. Turmeric requires a warm and humid climate. It can be grown in diverse tropical conditions from sea level to 1500mm above MSL within a temperature range of 20-30°C with a rainfall of 1500 mm or more per annum or under irrigated conditions.  Crop becomes ready for harvest in the month of December to March after 7 months of planting during January to March.

Turmeric can be grown as an inter crop with with chillies, colocasia, onion, brinjal and cereals like maize, ragi, etc

Types of Crop:
Major varieties of turmeric that are produced in India namely: -
  • Alleppey Finger (Kerala)
  • Erode Turmeric (Tamil Nadu)
  • Salem Turmeric (Tamil Nadu)
  • Rajapore Turmeric (Maharashtra)
  • Sangli Turmeric (Maharashtra)
  • Nizamabad Bulb (Andhra Pradesh)

Turmeric is a very important spice in India from ancient times. India is the world's largest producer of turmeric, i.e. nearly 80% of the world's total production. Area under turmeric cultivation is about 183 thousand hectares annually. The yield will be around 4000-4500 Kgs per hectare. The production is estimated to be about 8 lakh tonnes per annum. With slight changes in production from last five years, India produces approx 792 thousand tonnes of turmeric in 2010. Major change was mark in the year of 2004-05 when production was increased by 27% and reached 718 thousand tonnes with comparison of 522 thousand tonnes in 2003-04.

Turmeric is grown as a Kharif crop in India. Due to high curcumin, India's Turmeric is considered to be of best quality. Major producing states in India are Andhra Pradesh, Tamil Nadu, Orissa, West Bengal, Karnataka, and West Bengal. Andhra Pradesh is the major producer and contributes approx 47% of total production. Tamil Nadu and Karnataka place themselves at the second and third position sharing 21% and 11% respectively.

India is also the largest consumer of turmeric in the world. India's Domestic consumption accounts for nearly 90% of total production.  Turmeric uses dates back to nearly 4000 years, to the Vedic culture in India for medical purpose. Turmeric has several medicinal properties like tonic, blood purifier and antiseptic. It protects the liver from a number of toxic compounds.  It is used in the preparation of medicinal oils and ointments.

India export approx 6% of its total production and still the largest exporter in the world. During 2010 India's total export was 50.7 thousand tonnes (approx 381 crore) that accounts 60% of the world turmeric exports. India exports Turmeric to many countries in USA, Bangladesh, Japan, Sri Lanka, UK, Malaysia, South Africa, Netherlands and Saudi Arabia. United Arab Emirates (UAE) is the major importer of turmeric from India accounting for 18% of the total exports followed by United States with 8%.

Major trading centers in India are Nizamabad, Duggirala, Sangli, Salem, Erode, Dharmapuri.

World Scenario:
In the world scenario India is the only leader in terms of production, Consumption and Export. India account 78% of the total world production followed by China, Myanmar, Bangladesh and Nigeria. After India, China is leader in terms of exporter followed by Vietnam and Myanmar. United Arab Emirates (UAE) is the major importer accounting for 24.06 % of the total exports followed by United States of America (12.93 %), Japan, Sri Lanka, Iran, United Kingdom and Middle Eastern countries.

Market Influencing Factors :
  • Domestic Fundamentals
  • Domestic and Export demand
  • Carryover stocks and stock with farmers/traders/warehouses
  • Sowing and harvesting
  • Weather at the production areas.
  • Acreage under Turmeric
  • Production at China, Myanmar, Bangladesh and Nigeria

Major websites:
www agricoop.nic.in