Turmeric Pricing Risk

Farming always has been a risky business and in all likelihood always will be. The changing environmental factors are creating much uncertainty and high risks. The changing outlook of risk management focuses on various risks faced in farming. Turmeric farming is one such trade that is vulnerable to many kinds of risks. This study focuses on the risk factors prevailing in the turmeric trade. Erode being the economic zone for turmeric; it is taken up to study the extent and the causes of risk. Instability of turmeric prices has always been a major concern of the producers, processors, traders, as well as the consumers. Erode farmers¿ direct exposure to price fluctuation makes it too risky for many farmers to invest in otherwise profitable activities. Any farming has an added risk because of the seasonal factors involved in production. This seasonality has a larger bearing on the price of the turmeric cultivated by the farmers in Erode. The price risk refers to the probability of adverse movements in prices of the turmeric produce.