The Agro Market Intelligence and Business Promotion Centre (AMI&BPC) of the Department of Agricultural Marketing and Agri Business has indicated that the price of hill grown tapioca may decline and trade in the range of Rs.4800-5200 a tonne during June-August.
As per trade sources, imports from Vietnam and Thailand are expected to be higher in coming months, the AMI&BPC said in a price advisory.
Hence, the chances of a price increase are very limited and tapioca farmers have been advised to sell their produce immediately.
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The price advisory was based on an analysis of the price of raw tapioca in the Salem market over the past 15 years by the AMI&BPC at the Centre for Agricultural Rural Development Studies (CARDS), Tamil Nadu Agricultural University, and a trader’s survey.
Normally, raw tapioca price is calculated based on its starch content. Currently, raw tapioca fetches Rs. 7200-7800 a tonne. Sago and starch was traded at Rs. 4000 and Rs. 2500 respectively per 90kg bag during April and it declined to Rs. 3850 and Rs. 2350 respectively due to poor response from north Indian traders as they have started importing both food and industrial grade starch from Vietnam and Thailand.
Due to favourable rainfall during the last North-East Monsoon season (Oct-Nov, 2014), majority of farmers in Karumandurai, Salem district, and Kolli Hills of Namakkal district, had taken up tapioca cultivation.
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As per sources in Horticulture Department, tapioca has been cultivated on about 4,300 hectares in Kolli Hills.