Tamarind Prices Explained

Tamarind prices are rising (particularly in Asia) as the region experienced low supply from India. The country is the largest commodity producer, exporting 300,000 tons yearly.

The country’s increasing tomato prices made consumers switch to tamarind, influencing its demand and prices. On the supply side, local farmers struggle with processing challenges leading them to shift to other commercial crops. This translated to domestic and international supply deficits.

On the application side, tamarind gained widespread recognition in the Northern American market as it’s used in ethnic dishes, potato chips, ice cream, and coffee. McCormick even predicted that this flavor would dominate menus in the coming years.

Why are tamarind prices fluctuating?

1. Demand from Various Industries

Generally, market dynamics come from various industries’ shifting demand resulting in tamarind price fluctuations. For instance, Bangladesh, India, Thailand, Mexico, and the United States are among the nations that eat tamarind-derived juice, pulp, powder, chutney, pickles, sauces, sweets, and tamarind kernel powder. Overall, the broad range of processed tamarind items that show its versatility, fuels substantial demand in both domestic and international markets

2. Weather Conditions

Weather is an important factor in its production as unfavorable conditions lessen the crop’s yield and quality, driving up tamarind demand and costs. Normally, prices tend to decrease throughout January when the harvesting takes place; however, during holidays,  prices tend to rise due to increased demand, particularly for dry snacks.

3. Trade Policies

Trade regulations imposed by different nations might affect the price of the fruit. For instance, India implemented a 50% import duty on tamarind from Thailand (the world’s second-largest tamarind producer) in an attempt to protect its indigenous sector and farmers.

As a result, its domestic prices surged which highly affected Indian consumers and processors. Conversely, it impacted Thai tamarind’s export competitiveness in other international markets.

Which variables impact the price of tamarind?

• Demand from Various Industries
• Weather Conditions
• Trade Policies
• Geographical Factors
• Trade Policies

Where does tamarind come from?

The tamarind tree is a leguminous species that originated in tropical Africa and has now spread to Asia.

Originally, it was native to tropical America but widely utilized in Asia due to its acidic flavor which suits the varied taste of Asian cuisine. There are several types of tamarind and each has special qualities and uses.

1. Sweet Tamarind – This variety of tamarind is well known and is frequently grown for its pulp. Additionally, it has a sweet and tart flavor which finds extensive use in culinary like making sauce and candies.

2. Sour Tamarind – While all tamarinds have a sour flavor, some are more known for their unique acidity. These kinds are often used in recipes that call for a stronger sour or acidic taste.

3. Makham Pom – Known as the Vietnamese tamarind or black tamarind, it produces pods with a pulp that is both sweet and sour. Also, it is used in traditional medicine and cooking throughout Southeast Asia.

4. Indian Date – Known for its small size and delicious pulp, Indians mostly use this as a spice in their cooking as it offers a softer flavor when compared to several other varieties.

5. Velvet Tamarind – It is native to West Africa. Its pulp is soft and tarty which is usually eaten raw or added to traditional meals.

6. Wild Tamarind – This variety produces pods with an acidic pulp that is pleasant. Additionally, it offers distinct flavor qualities and is occasionally used in regional cuisines and traditional medicine.

7. Maringa Tamarind – It grows in several tropical locations. The pulp of this plant has a tart flavor and is used in traditional medicine as well as cooking.

What are the uses of tamarind?

Tamarind enhances flavor and has health-promoting qualities like antibacterial, antioxidant, antifungal, and antiseptic qualities. Moreover, it is a versatile plant that is widely used in the food and cosmetic industries. Its moisturizing and bleaching properties are often used in cosmetics. Some of the main uses of tamarind are:

1. Food Industry – Tamarind pulp is frequently used as a flavoring, preservative, and spice in drinks, sauces, and sweets. Additionally, its pectin is used to preserve fruits without the addition of acids. Furthermore, tamarind seeds can be ground and roasted to replace coffee.

2. Textile Industry – Its gum is used to thicken fabrics when they are dyed and printed. Leather and fabric dyes are made from the tannins and dyeing agents found in tamarind seed coats.

3. Agriculture – Tamarind seed cake is a good soil conditioner and fertilizer. Additionally, its leaves and flowers are used as fodder for animals.

4. Paper Industry – The cellulose-rich tamarind seed husk turns out to be a useful resource for making paper. Also, its gum is useful as a printing paste or as a glue for paper.

5. Explosives Industry – Tamarind gum acts as a thickening agent for explosives and fireworks.

What is the future price of tamarind?

Consumer preferences for healthier food products are driving up demand and prices for tamarind extract globally. For example, the growing veganism trend in the U.S. combined with growing concerns about immunological and nutritional deficits is expected to propel the tamarind extract market in North America and encourage its use in the pharmaceutical industry.

Also, tamarind extract is frequently included in hair and skin care products due to the region’s growing demand for organic cosmetics. Moreover, tamarind gum is gaining traction in the beverage industry as it’s used as a natural stabilizer and texture enhancer in ice cream and other beverages. 

ADM and Pure Indian Foods incorporate this commodity in their product formulations to meet consumer preferences for clean-label ingredients.

Therefore, the price of tamarind will be $0.65 per kilogram in 2028 and its market value is expected to reach $1628.9 million by 2032 at a CAGR of 5.8%.