Ginger prices are under pressure due to good arrivals and tough competition from China. With Indian dry ginger prices at a premium of $ 500 per tonne at $ 2700, exports from the country are lower than last year.
India produces 2.75 lakh tonne of ginger per annum, almost a third of the world’s production of 8.35 lakh tonne.
“Indian exports were good in the first two quarters, but now we are facing stiff competition from China and Nigeria. Nigeria is quoting $ 2100 per tonne and China is selling at $2200 .We expect Indian market to decline as arrivals increase in the coming days. The production is good in the current crop season,” Ramalingam Vishwanath of GRK Traders told FE. The Chinese crop, which comes to the market in December, is said to be higher than normal, Ramalingam added.
According to Spices Board data, India exported 10,950 tonne of the commodity during April-September period of 2015 as against 8,650 tonne for the corresponding period of 2014. The unit price of export in 2015 stands at R138.05 per kg as against R110.94 in the previous year. Board records show that Indian ginger is priced at $5.73 per kg in the New York market compared to $ 4.59 per kg for Chinese whole peeled ginger.
Arrival of fresh ginger is good in most of the markets and the production is good according to reports, KS Mohanan, a leading trader from Wayanad said.
“New areas have come under ginger farming in Karnataka. The production in Wayanad would be lower but farmers from Wayanad have spread out to neighboring states in search of new farmlands,” he added.