Indian ginger prices are at a premium to other origins and likely to stay firm till the new crop hits the market, traders said. Reports of a normal monsoon is likely to help in increased sowing and production of ginger in the coming months.
India produces 2.75 lakh tonne of ginger per annum, almost a third of the world’s production of 8.35 lakh tonne.
Domestic consumption of ginger is seen rapidly increasing and so does imports from cheaper origins. Volume of fresh ginger transported to North India has increased dramatically, a trader from Wayanad said. Entry of big retailers and refrigeration facilities has meant increased demand for fresh ginger.
“The markets are steady and range-bound. The demand is sluggish and any activity in the market will be seen only in October,” Anand Kishore of Kishore Spices said. He said that the next crop is estimated to be good on reports of good rain. Stocks of fresh ginger in cold-storages is estimated around three lakh bags, Anand said.
“Indian ginger is at a premium compared to China’s and Nigeria’s. Nigeria is quoting $ 2,200 per tonne and China is selling at $2,600. Indian ginger is selling around $2,900,” Ramalingam Vishwanath of GRK
Traders told FE. The domestic demand is sustaining the ginger sector, Ramalingam added.
Production is likely to be high with farmers getting good returns from ginger in the past two years, KS Mohanan, a leading trader from Wayanad said.
Wayanad and surrounding areas in Kerala, which accounted for bulk of the ginger in the 90s, have seen ginger farming coming down rapidly due to labour shortage and higher input cost. But enterprising farmers from Kerala moved out to nearby places in Karnataka in the search for land and cheap labour. In Karnataka, ginger is grown in about 29,000 hectares, spread over Hassan, Coorg, Shimoga,
Chickmagalur, Bidar and Mysore districts. It is cultivated both as the main crop as well as an intercrop in plantations.
According to Spices Board data, India exported 24,800 tonne of the commodity during 2015-16 as against 40,400 tonne for the corresponding period of 2014-15. The unit price of exports in the last fiscal stands at R109.12 per kg as against R82.01 in the previous fiscal. Board records show that Indian ginger was priced at $5.29 per kg in the New York market compared to $3.57 per kg for Chinese whole peeled ginger in the first week of July.