Research Paper INTRODUCTION MATERIALS AND METHODS. Performance and prospects of turmeric exports in India G. RAMANATHAN

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1 INTERNATIONAL RESEARCH JOURNAL OF AGRICULTURAL ECONOMICS AND STATISTICS Volume 2 Issue 2 (September, 2011) Page : Received : May, 2011; Accepted : August, 2011 Research Paper Performance and prospects of turmeric exports in India G. RAMANATHAN Correspondence to : G. RAMANATHAN Department of Agricultural Economics, Faculty of Agriculture, Annamalai University, ANNAMALAINAGAR (T.N.) INDIA g_ramanathanau@yahoo.com ABSTRACT Turmeric is an important crop in India both for domestic and export market. Turmeric pays more economic returns to the farmers and foreign exchange to the country through export. The study attempts to examine the export performance of turmeric in India. The results of the study indicated that export of turmeric in quantity and value were positive and significant with 6.52 per and per per annum from to , respectively. The item- wise exports of turmeric revealed that the largest share was of powdered form i.e. 42 per in global trade. Next came the dry turmeric, share of which was 33 per and turmeric in fresh form which contributed 23 per in exports and lastly oleoresins oils which accounted 2 per in exports. The analysis of the country wise export market of Indian turmeric indicated that UAE was the major importing country of fresh turmeric accounting for nearly 22 per of value of the total exports. U.K. was the major destination of powdered form of turmeric contributing 17 per in value of total exports. U.S.A. was the largest importer of dried turmeric and accounted for 19 per of the total value of exports. The major destination of oleoresins of turmeric was USA accounting for 17 per of the value of exports. Ramanathan, G. (2011). Performance and prospects of turmeric exports in India, Internat. Res. J. agric. Eco. & Stat., 2 (2) : Key words : Growth rate, Item-wise exports, Country-wise export market INTRODUCTION India is a land of spices. Indian spices are popularly known for their flavour both in the domestic and international market. They are not only indispensable for the dietary pattern but are also known for their medicinal and curative effects since immemorial. India is one of the largest producers, consumers and exporters of spices. It grows over 50 spices in different parts of the country. Turmeric is largely consumed as a spice in India. Turmeric is an important crop in India both for domestic and export market. With its inherent qualities, Indian turmeric is considered the best in the world. Turmeric pays more economic returns to the farmers and foreign exchange to the country through export. Turmeric is grown throughout the world comprising the major turmeric producing countries like India, China, Java, Sri Lanka, Pakistan, Haiti, Jamaica, Bangladesh, Taiwan and Indonesia. According to the latest statistics, the total production of turmeric was estimated around lakh tonnes. In country-wise analysis, India ranks first with 78 per of the total production of turmeric followed by China 8 per, Myanmar 4 per, Nigeria 3 per, Bangladesh 3 per and others 4 per. India contributes about 60 per to the total trade (Gandhi, 2007). India is a dominant player in the global market as far as turmeric export is concerned. Other major exporters are Thailand, Southeast Asian countries, Pacific islands, Central and Latin American countries and Taiwan. Turmeric is shipped in the form of dry turmeric, fresh turmeric, turmeric powder, curcuminoids, dehydrated turmeric powder, oils and oleoresins. In view of increased awareness on advantages of turmeric consumption, increasing population and increased urbanization, the demand is increasing. The export requirement also is increasing, for increasing production and there by sustaining availability for meeting domestic and export market, there has been need to increase productivity and improve quality through crop management in field. Hence, an attempt has been made to examine the export performance of turmeric in India. MATERIALS AND METHODS The secondary data were collected from spices statistics and other web based sources and analysed in order to accomplish the objectives of the study. The HIND AGRICULTURAL RESEARCH AND TRAINING INSTITUTE

2 G. RAMANATHAN following tools of analysis were employed for the present study: Growth rate estimation: The pace and pattern of growth of performance indicators like area, production, productivity and export depend on technological advances in the various sectors of turmeric industry. These would be perceptible change in performance indicators and these changes are examined using growth models. In the present study, simple exponential (Gujarati, 1992) model was used. It is given as: GR t = A (1+r) t V t where, the equation (1) is linearised and become; ln GR t = α + β t + u t where, GR t is dependent variable (area, production, productivity and export of turmeric) t = Time in discrete years α = Log A, constant r = Annual compound growth rate β = log (1+r) and u t = log V t is error term The compound growth rate (r) is computed from the estimated β co-efficient r = (Antilog of β -1) X 100 The t test is applied to test the significance of the compound growth rate. Garrett s ranking: Garrett s ranking technique was used to rank the problems in export of turmeric in order of the importance. The problems in export of turmeric faced by turmeric growers are: No disease resistant varieties, Less curcumin content, High slotting fee, No standard grades and grade specification, Lack of processing units, Organic turmeric production, The respondents were asked to rank these problem and ranks given by respondents were converted into present position with the use of the following formula: 100 (Rij Present position = N ) j where, R ij = Rank given for i th problem by j th individual N j = Number of factors ranked by i th individual RESULTS AND DATA ANALYSIS The findings obtained from the present studies have been presented in the following sub heads: Growth performance of turmeric in India: The pace and pattern of supply of agricultural commodities tend to change due to technological advances in agriculture, development of irrigation infrastructure, improvement in input delivery system and product marketing and trade. One could witness perceptible change in area, production and productivity of agricultural commodities over the years. In the present study, compound growth rates were computed for area, production, productivity and export of turmeric using time series data from to to the whole country to examine the pattern of change. The estimated growth rates and their level of significance are presented in Table 1. Table 1 : Growth rate of area, production, productivity and export of turmeric in India, to Compound growth rate Sr. No Particulars (perage) 1. Area 2.09** ( ) 2. Production 3.76** ( ) 3. Productivity 1.62* ( ) 4. Exports 6.52** ( ) 12.72** ( ) Figures in parentheses denote standard error * and ** indicate significance of values at P=0.05 and 0.01, respectively It could be seen from Table 1 that the area, production, productivity and exports had shown a positive growth over time. Area and production of turmeric had shown an annual compound growth rate of 2.09 per and 3.76 per per annum from to , respectively. The yield of turmeric had increased 1.62 per per annum from to The export quantity and value of turmeric had an annual compound growth rate of 6.52 per and per per annum from to , respectively. Item wise exports of turmeric from India: It could be seen from Table 2 that the largest share 224

3 PROSPECTS OF TURMERIC EXPORTS IN INDIA was of powdered form i.e. 42 per in the world trade of turmeric. Next comes the dry turmeric, share of which was 33 per and lastly turmeric in fresh form which contributed 23 per in exports. Exports of fresh turmeric have shown wide fluctuations over the years. Its exports were to the tune of 5464 tonnes valued at Rs. 757 lakhs in It decreased in the next two years and then increased to 9562 tonnes in , again fell down in the next year and then touched to tonnes in , valued at Rs lakhs. Then it decreased to tonnes in and valued at Rs lakhs. Export of dry turmeric were higher than the fresh turmeric. Exports in the dry form were tonnes in , valued at Rs lakhs, which increased slightly in the next year, but then dipped down to tonnes in The position improved in and exports were tonnes, but there again decreased to tonnes in valued at Rs lakhs. Then it increased to tonnes in and valued at Rs lakhs. The exports of powdered form have the highest share in total exports. The quantity of exports was 6094 tonnes in valued at Rs lakhs, which showed a steady increase over the years and was tonnes in valued at Rs lakhs. Oleoresins are a highly viscous orange brown product and have a characteristic turmeric aroma. It was in great demand by the food and pharmaceutical industries abroad. The quantity of exports in this form was tonnes, valued at Rs lakhs in and it increased to tonnes in valued at Rs lakhs. Country wise export market of Indian turmeric, : The major countries to which turmeric and its products are exported is presented in Table 3. It could be seen from Table 3 that the UAE was the major importing country of fresh turmeric accounting for nearly 22 per of value of the total exports. Bangladesh came the next with 13 per share followed by Iran (6 per ) and Malaysia (5 per ) of value of total exports. Other importers include South Africa, Egypt, U.K., Saudhi Arabia and Israel. Highest exports were realized by India in powder form of turmeric while fresh and dry turmeric was mainly exported to Asian countries. U.K. was the major destination of powdered turmeric contributing 17 per in value of total exports. Next was U.S.A. accounting for 11 per followed by Netherlands 10 per, Germany 8 per, UAE 7 per and South Africa three per. Canada, Morocco, Malaysia, Bangladesh and Australia were also the importers of powdered turmeric. U.S.A. was the largest importer of dried turmeric. It accounted for 19 per of the total value of exports. Next in order were Malaysia 18 per followed by U.K. 9 per, Japan 8 per, Sri Lanka 8 per, UAE 7 per, Bangladesh 6 per and Singapore 4 per. The major destination of oleoresins of turmeric was U.S.A. accounting for nearly 17 per of the value of exports realized by India in this form. Other important export destination were Japan 14 per, Germany 10 per, Spain 8 per, U.K. 7 per and Singapore 5 per in Other importing countries were Korea, France, Canada, Mexico, Netherlands, China and Thailand. Table 2: Item-wise exports of turmeric from India Fresh Dried Powder Oleoresins Total exports Years (tones) Perage

4 G. RAMANATHAN Table 3: Country wise export market of Indian turmeric, Fresh Dried Powder Oleoresins Country Per Country Per Country Per Country Per U.A.E U.S.A U.K U.S.A Bangladesh Malaysia U.S.A Japan Iran U.K Netherlands Germany Malaysia Japan Germany Spain South Africa U.A.E U.A.E U.K Egypt Bangladesh Saudi Arabia Singapore U.K Sri Lanka South Africa Korea Saudi Arabia Singapore Canada France Israel Others Morocco Canada Others Total Malaysia Maxico Total Bangladesh Netherlands Australia China Others Thailand Total Others Total Constraints in export of turmeric: The major problems in the export of turmeric in the study area were identified and are presented in Table 4. Table 4: Problems in export of turmeric Sr. Problems No. Mean score Rank 1. No disease resistant varieties VI 2. Less curcumin content II 3. High slotting fee I 4. No standard grades and grade specification IV 5. Lack of processing units III 6. Organic turmeric production V It could be seen from Table 4 that high slotting fee of turmeric was the main problem with mean score of per followed by less curcumin content (71.62 per ) and lack of processing units (68.35 per ). The other problems were as no standard grades and grade specification, organic turmeric production and no disease resistant varieties of turmeric in India. The economics of production, marketing and processing of turmeric in India have been carried out by Kalamkar et al. (2002) and Lokesh et al. (2004). Conclusion: The study has shown that largest share was of powdered form i.e. 42 per in the world trade of turmeric. Next came the dry turmeric, share of which was 33 per and lastly turmeric in fresh form which contributed 23 per in exports. The study has shown that the U.A.E. was the major importing country of fresh turmeric accounting for nearly 22 per of value of the total exports. U.K. was the major destination of powdered turmeric contributing 17 per in value of total exports. U.S.A. was the largest importer of dried turmeric. It accounted for 19 per of the total value of exports. The major destination of oleoresins of turmeric was U.S.A. accounting for nearly 17 per of the value of exports realized by India in this form. The export of turmeric could be accelerated significantly from the country by increasing production through adoption of modern technologies such as tissue culture and biotechnology, gearing of private entrepreneurs to start processing industries for extraction of essential oils, development of storage and warehousing, transport and market infrastructure in the country. Close coordination among various organizations related with exports of turmeric and creating greater awareness about the benefits of using by- products of turmeric viz., dried rhizome, powdered form, fresh and oleoresins. LITERATURE CITED Gandhi, G.P. (2007). Market Survey, spicesindia.com. 226

5 PROSPECTS OF TURMERIC EXPORTS IN INDIA Kalamkar, S.S., Dodke, L.B., Shende, N.V. and Ldeoghare, B. (2002). Economics of production and marketing of turmeric, Indian J. agric. Mktg, 16(2): Lokesh, G.B. and Chandrakanth, M.G. (2004). Economics of Production, Marketing and Processing of Turmeric in Karnataka, Indian J. agric. Mktg, 18(2): * * * * * * * * 227