Turmeric from India: Overcoming Tough Conditions with Value Addition

India is the largest producer and exporter of Turmeric. The yellow spice is becoming very popular these days as it is linked to numerous health benefits. India has benefited from this increased demand: between 2014 and 2018 the total exported value of turmeric increased by 110%, to 236.5 million USD. However, this year the total production and export are expected to decline due to poor weather conditions. To compensate for unstable income due to fluctuating supply, Indian companies have started to invest more in value-added turmeric over raw turmeric, as it provides a more stable source of income.

The 2019 export quantity of raw turmeric and turmeric powder is expected to decrease compared to 2018 because of a decrease in production volume due to water scarcity. During the first half of 2019, there was a drought in India during the critical monsoon season. According to the India Meteorological Department (IMD), the rain deficit in the southern peninsula had risen to 28%. Later in 2019, severe floods also damaged the crops, which affected the yield and quality of many turmeric roots.

The price for turmeric is normally high during the months of January and October and low during June. The current price of raw turmeric from India is around 1.2 USD per kg according to  The Divine Foods, an Indian turmeric exporter. The price has increased by around 10% compared to the same period last season due to decreased production volume and increased demand. Besides the forces of supply and demand, the price of turmeric varies depending on the level of curcumin present in the spice.

The Divine Foods exports turmeric with the highest required quality standards, with curcumin levels between 5% and 9%, whereas other competitors in the market export turmeric with curcumin levels between 2% and 5%. The company’s organic turmeric is produced as per the certifications and standards prescribed by the European Union. This is significant, as adulteration is a problem in the global turmeric market. To compensate for the lower availability of turmeric this season, more suppliers are starting to dilute turmeric extracts with synthetic materials such as synthetic curcuminoids, which are around one third cheaper.

Recently, The Divine Foods has started exporting value-added turmeric. This includes, but is not limited to, organic high curcumin turmeric powder, golden milk latte mix, and curcumin capsules. The price for turmeric powder or raw turmeric is fluctuating yearly, but the price for value-added products is relatively stable, which makes them a stable source of income. Furthermore, “the turmeric awareness in the global market is increasing each year and there is a huge potential for turmeric products in the next few years.”