Nov. 5 – The price of gold has been trading at historic highs for the past few months, but in a week where India purchased 200 tons of the commodity from the IMF, it is being outperformed by the price in weight of a staple Indian commodity, turmeric.
Turmeric is the golden yellow spice that is an ingredient in many curry powders. Endemic to Southeast Asia and related to the ginger plant, Turmeric is roasted, then ground and used in an array of cuisine preparations. In Erode, the southern city in Tamil Nadu, a 100 kilogram bag of turmeric now costs more than 8 grams of gold.
Erode is the world’s largest producer and the most important trading center of turmeric in Asia, and has seen its turmeric trading prices shoot up 30 percent in value over the past five months. Stocks of turmeric are low across India, except in Erode, and farmers nationwide are converting from sugar cane to grow the plant. Prices of turmeric were as low as just US$55 for a quintal (imperial hundredweight) just two years ago, having remained constant for eleven years. Today the price is US$290 per quintal.
As the old problem with gold resurfaces – you can’t eat it – the new gold of turmeric is attracting investors, speculators and kitchens across Asia. Bon appétit!
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