Turmeric is an invaluable spice crop which has huge economic importance in the farm economy as well as Indian economy. India ranks at first place in turmeric production having around 80% of total share in world. Southern states of India Telengana, Andhra Pradesh, Tamil Nadu are major producer of turmeric in Indian states. The present study was conducted in Samastipur district of Bihar with having an objective to find out economics of turmeric production and to find out the perception of farmers and retailers on marketing tie to increase farmer’s income. Cost of cultivation of turmeric was Rupees 53700 (avg.) in which two main contributor are Manure and fertiliser with percentage share of 37 & 22 respectively. Net return to farmer was Rupees 56300. Cost of production per Kg was 4.88 Rupees & Net Return per Kg was rupees 5.12. Three different marketing channels were followed by farmers based on number of market intermediaries in the marketing chain. It was observed that fixing fair price for turmeric per year is the key issue which framers wanted to be resolved from this tie up marketing model and retailer want regular supply of turmeric into the market. Lack of co-ordination among producers to increase their bargaining power & lack of market intelligence are two most important constraints faced by the farmer in marketing and production of turmeric.

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