In a blender jar add coconut, turmeric, ginger, green chillies, onion, garlic, salt and sugar and blend this for few seconds or until you get a smooth paste.
Coconut mixture is ready. Now transfer it into a bowl.
Heat oil in a tadka pan, add mustard seeds, red chillis, when it starts crackling add curry leaves stir this and immediately add this in prepared coconut mixture and mix well.
Turmeric Coconut Chutney is ready to serve.