Turmeric Market Analysis 2024: Global Production, Price Trends, and Trade Insights

The turmeric market in 2024 faces several developments, including production shifts, price fluctuations, and supply chain disruptions. Key players like India and Peru continue to influence global supply, while demand remains strong in regions like the UAE and Asia. Here's a detailed analysis of the current turmeric market, along with insights for traders.

Global Turmeric Production Trends

1. India:

   • Major Player: India remains the largest producer of turmeric globally, supplying around 80% of the world’s turmeric.
   • 2024 Outlook: Favorable monsoon rains in key regions like Gujarat and Maharashtra have boosted turmeric production this year. Large turmeric crops are expected, contributing to stable global supply levels.
   • Harvest Season: Typically, turmeric is harvested between February and May in India. For 2024, the yield is projected to be strong due to improved agricultural practices and climate conditions.
2. Peru:
   • Production Decline: Peru's turmeric exports dropped by 44% in 2024 compared to the same period in 2023, amounting to 26,480 tons. This decline is largely attributed to decreased demand from major markets like North America (down 32%) and Europe (down 57%).
   • Exporters: The top exporters of Peruvian turmeric include Blue Pacific Oils, JCH Agroexportaciones, and Vancard Peru. Major importers include Global Farm Enterprises and Vision International.

Price Trends in 2024

• India: The large turmeric crop in India has stabilized prices, with current average prices around $1,400 to $1,500 per ton. However, local demand for turmeric, both for medicinal purposes and the spice market, remains strong, putting pressure on supply.

• Peru: The export price of turmeric from Peru has been impacted by declining shipments and reduced demand from key markets like North America and Europe. As a result, turmeric prices have remained volatile, with organic turmeric shipments decreasing by 33% and conventional turmeric by 70%.
   
• Global Market: The global price trend is characterized by a slight rise due to production disruptions in Peru and high demand in Asia and the Middle East. Turmeric’s use in food, cosmetics, and wellness products continues to drive demand.

Main Importers and Exporters

• India: Dominates the global turmeric market, supplying most of the turmeric exported to Asia, the Middle East, and Europe.

• Peru: While a smaller player, Peru has seen significant demand for its organic turmeric in North America and Europe. However, 2024 has seen reduced shipments, leading to a sharp decline in its market share.
   
• North America & Europe: These regions are key importers of turmeric, though shipments from Peru have dropped significantly this year. In contrast, Indian turmeric remains strong in these markets.

Product Quality in 2024

• India: Indian turmeric production is expected to maintain high quality, with improved cultivation techniques contributing to robust harvests. The crop is primarily used for culinary, medicinal, and cosmetic applications.

• Peru: The quality of Peruvian turmeric remains competitive, particularly for organic varieties, but the drop in exports and logistical issues have reduced its presence in international markets.

Insights for Traders in UAE and Asia

1. Diversify Supply Sources: Traders in the UAE and Asia should consider sourcing from India, which is expected to have an abundant supply in 2024. Given Peru’s declining exports, India offers more stable pricing and supply.

2. Monitor Price Trends: The global turmeric market remains sensitive to production shifts and demand changes. Traders should keep an eye on market developments, particularly in India, where the large crop could impact global prices.
    
3. Focus on Quality: Organic turmeric continues to see strong demand, especially in health-conscious markets. Sourcing high-quality turmeric, particularly from India, will allow traders to capitalize on growing consumer preference for premium products.

FAQs for Turmeric Market 2024

1. Why are turmeric prices fluctuating in 2024? Turmeric prices in 2024 are fluctuating due to a mix of strong production in India and a decline in exports from Peru. While India has a large crop, production issues in other regions have created supply uncertainties, driving price volatility.

2. What are the main turmeric-producing countries in 2024? India remains the largest producer of turmeric globally, followed by countries like Peru. India supplies the majority of turmeric exports, while Peru focuses on organic varieties.
    
3. How has Peru’s turmeric production been affected in 2024? Peru's turmeric production has seen a sharp decline in 2024, with exports down 44% compared to last year. Major markets like North America and Europe have reduced their demand, impacting the Peruvian market.
    
4. What are the current price trends in the turmeric market? Prices are stabilizing due to a large crop in India, but global supply constraints from other regions, such as Peru, have led to some price volatility. Indian turmeric prices range from $1,400 to $1,500 per ton.
    
5. Who are the main importers of turmeric in 2024? The main importers of turmeric in 2024 include North America, Europe, the UAE, and other parts of Asia. India supplies most of the world’s turmeric, with Peru catering to niche organic markets.
    
6. What opportunities exist for turmeric traders in the UAE and Asia? Traders in the UAE and Asia should focus on sourcing from India, which offers stable prices and high-quality turmeric in 2024. The growing demand for organic and premium turmeric presents opportunities for traders to tap into health-conscious markets.

By keeping up with the latest trends in the turmeric market, traders can make informed decisions to optimize their supply chains and capitalize on emerging opportunities in key regions like the UAE and Asia.