Turmeric Powder Price Surge: India's Role and What It Means for You!

Turmeric powder, a popular spice known for its vibrant color and health benefits, has seen a significant price increase in recent months. This article explores the factors behind this trend, focusing on India's role as the world's largest producer and exporter of turmeric.

Price Trends:

• Overall: Turmeric powder prices have increased significantly in the last 9 months (May 2023 - February 2024).

• Specifics:

• Prices started around $4-$6 per kg in May 2023.

• They reached a peak of $8-$10 per kg in August 2023.

• Currently, prices range from $6-$8 per kg, still higher than May 2023.

India's Role:

• India dominates the global turmeric market, producing nearly 80% of the world's supply.

• Recent events in India have significantly impacted turmeric prices:

• Reduced production:

• Droughts, excessive rainfall, and pest/fungal diseases affected yields in 2023.

• Farmer protests disrupted harvesting and transportation.

• Increased demand:

• Growing global popularity of turmeric for its health benefits.

• Supply chain disruptions due to the war in Ukraine limited alternative spice options.

Price Change and India:

• Reduced production in India is the primary driver of the global price increase. Lower supply leads to higher prices.

• Farmer protests and transportation disruptions further exacerbated the supply shortage, contributing to the price hike.

• Increased global demand plays a role, but wouldn't have caused such a significant increase without India's supply constraints.

The chart below illustrates the price trend over the past 10 months: