India Turmeric Market

Market/ Product Overview

India’s turmeric & processed products sector has evolved from a predominantly raw spice market into a diversified value chain valued at US$ ** billion in 2024, supported by processing clusters spread across Telangana, Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh, which together account for over 85% of national output. The market’s expansion has been driven by annual turmeric production rising to 1.10–1.25 million tonnes in 2024, compared with only 850 thousand tonnes a decade earlier, highlighting a supply shift linked to better seed varieties, higher farm-gate prices averaging INR 130–150 per quintal (in 2024), and increasing contract farming by extract manufacturers. On the demand side, domestic consumption of raw turmeric reached ** thousand tonnes in 2024, boosted by culinary usage in India’s US$ ** billion spices and condiments market as well as rising adoption in health supplements, which grew at nearly **% YoY in 2024–25.

The processed turmeric segment—comprising curcumin extracts, oleoresins, powders, beverages, pharmaceutical formulations, and cosmetics—has shown even faster growth, valued at US$ ** million in 2024, supported by export demand growing at 8–10% annually. Curcumin extracts alone contributed nearly US$ ** million in revenue, with purity levels of 95% commanding premium export prices of US$ ** per kg. Rising penetration of Ayurveda-based products and the expansion of India’s nutraceutical industry valued at US$ ** billion in 2024 continue to strengthen downstream opportunities for manufacturers. With government support through schemes such as MIDH and cluster-based development initiatives, processing capacity is expected to expand further, enabling India to supply 80% of the world’s curcumin demand by 2032.

Significance of India in Global Turmeric & Processed Products Supply Chain

India holds unparalleled dominance in the global turmeric supply chain, accounting for 75–80% of global production, 60–65% of global exports, and nearly 90% of the world’s curcumin extract output as of 2024. Major producing states like Maharashtra, Tamil Nadu, Karnataka, and Telangana, jointly contribute nearly 650,000–700,000 tonnes annually, feeding both domestic processors and global buyers. India’s extensive cultivation area, estimated at 300,000–310,000 hectares, combined with average yields of 4.5–5.2 tons per hectare, places the country at the center of global supply security. India also accounts for over US$ ** million in annual turmeric exports, shipping nearly ** thousand tonnes to key markets such as the US, Bangladesh, UAE, and Malaysia, giving it significant leverage over global prices.

India’s significance is further amplified by its dominance in value-added derivatives, particularly curcumin extracts, which reached output volumes of ** thousand tonnes in 2024, representing a significant share of the global nutraceutical ingredient supply. Key extraction hubs in Kochi, Erode, Sangli, and Hyderabad house over 70 organised processors, some of which have invested in advanced solvent-free extraction technologies to achieve higher curcuminoid purity. India’s pharmaceutical and Ayurveda industries, together valued at US$ ** billion in 2024, also absorb a meaningful share of turmeric derivatives, strengthening backward linkages with farmers. With robust backward integration, efficient milling clusters, and established export networks, India’s overarching role will remain crucial to global supply chain stability through 2032.

India Turmeric & Processed Products Supply & Demand Trend

India’s fresh turmeric output reached 1.06 million tonnes, equivalent to 443 thousand tonnes of dried turmeric in 2024. India’s turmeric supply landscape has grown significantly, with annual production increasing supported by improved rhizome quality, adoption of high-yielding varieties such as Prathibha and Salem, and better irrigation coverage in key districts like Nizamabad and Erode. The farm-gate price movement, ranging between INR 6,500–8,000 per quintal, has incentivized growers to expand acreage by nearly 3–5% annually over the last five years. Supply has also benefited from a steady rise in cold storage capacity, now exceeding 500,000 tons nationwide, which helps farmers time their market releases, reducing seasonal price volatility by nearly 15–18%.

On the demand side, domestic consumption reached ** thousand tonnes in 2024, driven by households contributing nearly **% of raw turmeric demand. The food processing sector added another ** thousand tonnes, fueled by the growth of India’s US$ ** billion packaged food industry, which increasingly uses standardized turmeric powder and oleoresins. Pharmaceutical and nutraceutical sectors purchased nearly ** thousand tonnes of raw turmeric equivalent in 2024, supported by heightened demand for immunity-boosting ingredients post-COVID-19. Export demand remained strong, with overseas shipments totaling ** thousand tonnes valued at US$ ** million, representing a 7–8% YoY increase. Demand for curcumin extracts alone expanded by 12–15% in 2023 due to rising consumption in the US dietary supplement market valued at US$ 55 billion. Overall, by 2032, India’s domestic demand is expected to approach ** thousand tonnes, supported by population growth, rising incomes, and the expansion of processed food categories.

India Turmeric & Processed Products Market Segmentation

The India turmeric & processed products market can be segmented by product type, application, processing method, and distribution channel.

By product type, raw turmeric held the largest share with US$ ** billion in 2024, supported by domestic consumption of ** thousand tonnes. Meanwhile, the processed turmeric segment—comprising oleoresins, curcumin extracts, beverages, tablets, and cosmetics—was valued at US$ ** million, showing faster growth with an 8–10% annual increase. Curcumin extracts, in particular, accounted for US$ ** million in 2024, driven by global supplement demand and purity levels ranging between **%. Oleoresins generated around US$ ** million, benefiting from rising usage in packaged food and beverage applications.

In terms of application, the food and beverage sector consumed nearly **% of total turmeric powder volumes in 2024, backed by India’s US$ ** billion food processing industry. The pharmaceutical and nutraceutical sectors absorbed around **%, equivalent to ** thousand tonnes raw turmeric equivalent, reflecting strong demand for immunity-boosting formulations. The cosmetics and personal care segment, valued at US$ ** billion in India, accounted for nearly **% of turmeric-based product usage, especially in natural skincare formulations. Industrial applications, including dyes and natural colorants, represented an additional **% of market demand.

From a processing perspective, solvent extraction held nearly **% of the curcumin and oleoresin production market in 2024, generating US$ ** million in revenue due to its cost efficiency. Conversely, supercritical CO2 extraction, although contributing only **% of total extract output, grew at 14% CAGR due to increasing demand for solvent-free, high-purity extracts. Distribution channels also evolved significantly, with organized retail and e-commerce capturing nearly **% of overall spice sales by value in 2024, compared to only **% a decade earlier. Traditional retail outlets still dominate volumes with a share of **%, reflecting continued reliance on local spice mills and vendors.

India Turmeric & Processed Products Trade (Export & Import) Trend

India exported nearly ** thousand tonnes of turmeric and processed products in 2024, generating US$ ** million in export earnings. Key export destinations include Bangladesh, the UAE, the US, Malaysia, Nepal, and Iran, with Bangladesh alone accounting for US$ ** million annually. Turmeric powder exports formed the bulk of shipments at ** thousand tonnes, while turmeric fingers accounted for ** thousand tonnes. Curcumin extracts added US$ ** million in export revenue, with major markets such as the United States, Italy, Germany, and Japan demanding high-purity grades. Export prices ranged between US$ ** per ton for processed powder and US$ ** per kg for curcumin extracts in 2024.

India exported 161 thousand tonnes of turmeric (fresh, dry, and powder form) in 2023-24, valued at US$ 227 million. The country also exported limited quantity of turmeric oil and turmeric preparations of around 198 tonnes in 2023-24. Bangladesh, UAE, Iran, Morocco, and USA are the largest importer of turmeric and derivatives from India.

India imports minimal quantities—less than ** thousand tonnes annually—mainly from Myanmar and Vietnam to meet specific industrial blending needs. Import duties on raw turmeric stand at **%, while oleoresins and extracts are taxed at **%, protecting domestic processors. Under free trade agreements with ASEAN countries, certain turmeric derivatives enjoy concessional duty rates, facilitating smoother regional trade. India’s tariff structure for exporting countries like the US and EU ranges between 3–6%, allowing competitive positioning of Indian spices globally.

Compliance with international quality standards remains crucial, especially as the EU tightened pesticide residue norms in 2022–23, increasing testing costs by US$ 800–1,000 per consignment for exporters. Despite these challenges, India maintained its leadership, with export volumes rising by 7–8% annually over the last five years. Increasing bilateral trade partnerships, such as India-UAE CEPA, are expected to boost exports by US$ ** million annually by 2032.

Influence of India in Global Turmeric & Processed Products Price

Given India’s 75–80% share of global turmeric production, the country holds substantial influence over global price trends. Domestic wholesale prices in markets such as Nizamabad and Erode—ranging between INR 7,000 and 14,000 per quintal depending on season—directly impact global spot and contract prices. For instance, the price surge in 2021, when Indian turmeric rose by 29% YoY due to lower output, triggered a corresponding 22% increase in global prices in the same year. Export prices for Indian turmeric powder, which averaged US$ ** per ton in 2023, continue to serve as global benchmarks.