Telangana, India's largest producer of turmeric and the second-largest producer of chillies, exported spices worth around $200 million in the 2020-21 fiscal year, representing a 37% CAGR (compound annual growth rate) over the past five years.
Despite producing 30% of the country's turmeric, the state contributes little to its exports. According to Drip Capital, Inc., a global trade finance company, it was chillies that drove exports from the state.
Because the terrains of Telangana and Andhra Pradesh are ideal for chilli production, the two states will account for more than 60% of the country's chilli exports in 2020-21. "Given that Covid-19 has fueled a new wave of appreciation for Ayurveda and ethnic Indian food, the demand for convenience, and people's desire to experiment with different flavours," said Pushkar Mukewar, Chief Executive Officer and Founder of Drip Capital, "Telangana spice exporters can leverage opportunities from these emerging trends to make their mark in the export market."
"Given the medicinal value of turmeric and the global preference for beverages such as turmeric latte as immunity boosters, Telangana's turmeric exporters must stay up to date on market developments and innovate their products," he said.
This, he claims, will help strengthen 'Brand India' around the world and allow spice traders to better cater to international markets. Turmeric production fell by nearly one lakh tonnes last year to 11 lakh tonnes, according to trade sources, due to lower production in states such as Telangana, Tamil Nadu, and Karnataka.
Turmeric is a valuable cash crop that is primarily grown for the expected profits it brings, which are backed by sentiment. It is regarded as a good omen crop, and despite its high production costs, farmers are encouraged to cultivate it on the smallest patch of land available.
Telangana is the country's largest producer of turmeric. In Telangana, the four districts (formerly) viz. Nizamabad, Karimnagar, Warangal, and Adilabad account for approximately 90% of the state's turmeric production, and this area houses the country's important turmeric markets.
