The import tariffs for the top 5 trading partners range from 5% to 10%.

Source: ITC Market Access Map

The industry value chain flows from farmer to processor/exporter. Some suppliers have integrated processing facilities. They grow turmeric on their own farms and source from local farmers, then they process it at their plant and store it in their controlled atmosphere facility and then export it to different countries. When the product goes to the domestic market, the value chain will be "Farmer -> Processors -> Wholesale market(and packing for the domestic market) -> retail store." There are big players(processors and exporters) that have a huge influence over other suppliers.

In addition to processing, once Tumeric is harvested, processors procure turmeric from farmers and transfer it to processing facilities(washing, storing) and then go to the packing facility. In general, Farmers do not have their own packing facilities but exporters mostly do have their own packing facilities.

Saudi Arabia, the USA, UAE, Kuwait are the major importing markets, and the EU is the most attractive market to the suppliers because of the high price despite the complicated regulations. There is notable high demand in the Middle East and CAS countries because the price is lower than other countries, and the quality is better.

For CAS, cheaper transportation is able as it can be done by road but higher risk as often buyers are not validated. On the other hand, for the EU, it is difficult to find buyers/meet regulations but high offer prices.

Top destination countries of Pakistani turmeric, 2020

Turmeric season starts in November and ends in March. Harvest begins in February, and in March, people start to export turmeric to the global market.

The most commonly exported turmeric variety from Pakistan is Amba Haldi (scientifically called Cucuma Aromatic), also known as Wild Turmeric. It is possesses a yellow color and a Subterranean shape, typically characterized by irregular branches, along with thick, dark yellow-colored flesh.

In the major regions around Punjab, the local transportation infrastructure is well established. To deliver the product from the Punjab area, where the processors, packing facilities, and farms are all together, it takes around one day to deliver the product. The main producing region is located one day (Karachi port) away from Punjab.

Turmeric is grown by farmers and then goes to Processors/exporters who purchase this turmeric. They process and package it as per customer requirements. Then it is sold to traders and exporters who have it shipped to buyer destination countries.

Generally, exporters supply warehoused products. Also, it depends upon when an order comes in.

Supplier buying from other suppliers: Not very often. When turmeric is in season, it is available with the suppliers, and when it’s out of season, no supplier can supply it.

Deals are done with CIF terms mainly. Although the suppliers prefer FOB terms, deals are proceeded with CIF terms because of the congestion in Karachi port.

No specific regulations. The customer shares their characteristics and requirements for form, packaging, etc. 

Certificate of origin, Phyto certificate, bill of lading, and proforma invoice provided to the buyer.

It depends on the importing country, e.g., Kenya requires a Certificate of Conformity for all imports, so these regulations vary from country to country.

The main quality-related issues are Foreign matter and metallic materials. When harvesting turmeric, metallic materials are produced naturally and have to sort these materials in the processing stage. To sort out the non-edible materials, turmeric goes through metal detectors and extra processing. However, it is hard to check all the quality-related issues with the site visit since every batch is different and hard to check every single batch.

Quality checking is done at the production stage (production facilities) by the supplier and then by the govt at the shipping time when issuing a certificate of origin and phytosanitary certificate. A third-party inspection is also an option.

In terms of responsibility, the exporters are responsive and offer after-sales service mostly. If there is an issue, it is agreed to adjust it in the next shipment. The supplier does not take responsibility once the product arrives in the buyer’s country. We do our inspection at the time of shipment to ensure everything is aligned as well.

India, Vietnam, Burma are the main competitors. Currently, there is a shipping issue in Karachi. Due to the port congestion, the sea freight has been delayed since last year.