An economic analysis of turmeric marketing in Erode district of Tamil Nadu

India is the largest producer, consumer and the exporter of turmeric and contributes 80% of world's production. Tamil Nadu ranks first in terms of area and production of turmeric. Erode district is famous for turmeric production and marketing. Understanding of the cost of handling operations and marketing will enable farmers to take appropriate decision. To achieve different objectives, data pertaining to the year 2015–16 from 80 farmers and 15 intermediaries of each type were collected. Unit cost of handling operations was Rs. 665.40/q, of which 73% was occupied jointly by curing, drying and polishing operations. The marketed surplus of turmeric was 90.56%. Most of the produce (62%) was sold in regulated market, with higher concentration of sales during March, April and May. Channel – II was most efficient channel, with lowest marketing cost (Rs. 533.04/q), margins (Rs. 965.96/q) and price spread (15.70%). The study emphasized a need for evolution of processes/tools, which would help to reduce the cost of handling operations and also reduce dependence of farmers on labour. The model Agricultural Produce Market Committee Act needs to be enforced with honesty to rationalize marketing cost and margins and rule out the possibility of malpractices.