India Turmeric Market

Importance of India in the Global Supply of Turmeric

Turmeric, known for its culinary and medicinal properties, has deep cultural roots in Indian cuisine and traditional medicine systems like Ayurveda. India's favorable climate and fertile soil conditions make it conducive for turmeric cultivation, particularly in states like Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Odisha, and Maharashtra.

India plays a pivotal role in the global turmeric supply chain, accounting for a substantial portion of both production (over 75% of global production share) and export. Its dominance in production ensures a steady supply of turmeric to international markets, thereby influencing global prices and trade dynamics. Moreover, India's expertise in turmeric cultivation and processing technologies further solidifies its position as a key player in the global market.

India Turmeric Production & Demand Trend

India consistently leads in turmeric production, with a steady growth trend over the years. The demand for turmeric, both domestically and internationally, continues to rise due to its diverse applications in food, pharmaceuticals, cosmetics, and nutraceuticals industries. The growing awareness about the health benefits of turmeric, coupled with its expanding usage in various end-use sectors, contributes to sustained demand growth.

■ Increasing consumer awareness about the health benefits of turmeric.
■ Growing demand from the food and beverage industry for natural ingredients.
■ Rising popularity of turmeric-based supplements and herbal products.
■ Expanding export opportunities due to globalization and trade liberalization.
■ Government initiatives to promote turmeric cultivation and export.

■ Fluctuations in weather patterns affecting crop yield and quality
■ Price volatility due to fluctuating demand-supply dynamics
■ Quality control issues in the supply chain (Adulteration of synthetic curcumin and Biopiracy)
■ Competition from other turmeric-producing countries

India Turmeric Supply/Value Chain Bottlenecks/Challenges

The turmeric supply/value chain in India faces several critical bottlenecks, hindering efficient production and distribution. Post-harvest handling and processing suffer from inadequate practices, leading to quality degradation and loss of curcumin content. Additionally, the absence of standardized grading and sorting practices results in inconsistent product quality, affecting market competitiveness. Transportation and logistics challenges, particularly in rural areas, contribute to delays and losses during transit, exacerbated by limited access to modern processing technologies. Furthermore, inadequate market infrastructure in turmeric-growing regions restricts growers' market access and bargaining power.

Addressing these bottlenecks requires concerted efforts to improve post-harvest practices, implement standardized grading protocols, enhance transportation infrastructure, promote technology adoption, and invest in market infrastructure development. Such interventions are crucial for unlocking the full potential of the Indian turmeric sector and ensuring its sustainable growth and competitiveness in domestic and international markets.

Turmeric Price Setting Power of India

India's dominant position in turmeric production confers it with significant price-setting power in the global market. Price fluctuations in the Indian market often influence international prices, given India's role as a major exporter. However, global demand-supply dynamics and competitive pressures also influence turmeric prices.

Turmeric End-use Industries

The demand for turmeric is witnessing an upward trend, driven by its versatile applications across various industries:

■ Food and Beverage: Turmeric is extensively used as a spice and food colorant in cuisines worldwide.
■ Pharmaceuticals: Curcumin, a compound found in turmeric, has therapeutic properties, leading to its widespread use in pharmaceutical formulations.
■ Cosmetics & Personal Care Products: Turmeric is a popular ingredient in skincare and haircare products due to its anti-inflammatory and antioxidant properties.
■ Nutraceuticals: Turmeric supplements are gaining popularity for their potential health benefits, such as anti-inflammatory and antioxidant effects.

The trend of turmeric demand is witnessing a notable uptick, driven by its versatile applications across various end-use industries. In the food and beverage sector, turmeric is extensively utilized as a spice and food colorant, reflecting consumers' growing preference for natural ingredients and ethnic flavors.

Moreover, turmeric's inclusion in pharmaceutical formulations is on the rise, owing to the therapeutic properties of curcumin, a bioactive compound found in turmeric. Its anti-inflammatory and antioxidant properties make it a sought-after ingredient in skincare, haircare, and cosmetic products, catering to the increasing demand for natural and organic personal care solutions. Indian turmeric stands out for its superior quality, attributed to its high curcumin content, making it a preferred choice for medicinal and cosmetic purposes.

Furthermore, the burgeoning nutraceutical industry is embracing turmeric supplements for their potential health benefits, including immune support and anti-inflammatory effects. This diversification of end-use applications underscores the expanding market opportunities for turmeric and positions it as a key ingredient in various consumer products across global markets.

Turmeric Trade (Export & Import) Trend

India is a major exporter of turmeric, catering to global demand across regions like the Middle East, Europe, North America, and Southeast Asia. The country also imports turmeric to meet domestic demand during lean production seasons or for specific quality requirements.

India exported 170.09 thousand tonnes of turmeric (fresh, dry, and powder form) in 2022-23, valued at US$ 208 million. It included 67% of dry turmeric, 28% of turmeric powder, and 5% of other turmeric preparations (including fresh turmeric). The country also exported limited quantity of turmeric oil and turmeric preparations worth of US$ 1.12 million in 2022-23. Bangladesh, UAE, Iran, Morocco, and USA are the largest importer of turmeric and derivatives from India.

India Turmeric Market Competitive Analysis

The India turmeric market features a competitive landscape with several key players vying for market share. Some prominent companies involved in turmeric manufacturing and sales in India include:

■ Everest Spices
■ MDH Spices
■ Ramdev Food Products Pvt. Ltd.
■ Catch Foods
■ Eastern Condiments Private Limited
■ Pravin/ Suhana Masale
■ Aachi Spices & Foods Pvt Ltd.
■ Synthite Industries Ltd.
■ Vidya Herbs Pvt. Ltd.
■ Arjuna Natural Pvt. Ltd.
■ Sydler Group of Companies
■ Royal Spices
■ Mane Kancor Ingredients
■ Jabs International Pvt Ltd.
■ Plant Lipids (P) Ltd.
■ Olam Exports (India) Limited
■ Nedspice Group
■ SMJ Exports Pvt Ltd.
■ Swastik International
■ J.Lal Foods International