Economic Analysis of Turmeric Cultivation in India: Cost, Yield and Profitability

Abstract

Turmeric (Curcuma longa) is a high-value spice crop that plays a vital role in India’s agricultural economy, contributing significantly to farmer income, rural employment, and export earnings. This study presents an economic analysis of turmeric cultivation in India with a focus on cost of cultivation, yield performance, and profitability. The analysis is based on both primary data collected from farmers and secondary data from agricultural reports and published literature. Cost components are classified into variable and fixed costs, with major expenses attributed to seed rhizomes, labour, and fertilizers. The findings indicate that average yields range between 20–30 tonnes per hectare (fresh weight), with profitability largely influenced by input costs and market price fluctuations. The estimated benefit–cost ratio ranges from 1.5 to 2.5, indicating that turmeric cultivation is economically viable under favorable conditions. However, challenges such as price volatility, high labor costs, and inadequate post-harvest infrastructure affect overall returns. The study concludes that improving market access, adopting scientific cultivation practices, and promoting value addition can enhance the economic sustainability of turmeric farming in India.