Ginger imports surge on poor domestic supplies

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Kochi: Ginger imports into India have risen sharply because of strong demand for fresh ginger and poor local supplies.

Imports, which rose sharply in October and November, could remain so until the new crop hits the market because of strong demand, Spices Board officials told FE.

Some traders feel that ginger prices in the local markets will ease after the new crop arrival, other expect the market to remain firm due to low production in China.

Reports from London suggest that the global price of ginger could double with lesser production in far East due to a harsh summer.

Farmers in China , who produce a third of the world’s supply, are also planting less ginger after years of low prices.

Traders said supplies are also becoming scarce because growers cashing on the high prices for ginger seed are trying to cut down on the final produce.

Earlier, Indian traders use to illegally import fresh ginger mainly from Nepal through the land route.

“India currently imports ginger from Nigeria, Ethiopia and China where it is available for almost half of the local price,” Krishna Kumar B, a leading trader at the terminal market told FE.

But for the increased imports, Indian prices would have crossed Rs 200 per kg, sources said.

At the retail level ginner is selling at around Rs 125-130 per kg in the local markets, while fresh or vegetable ginger is selling around Rs 45-50 per kg.

Conversion into dry is not feasible at the current level of fresh ginger prices.

Meanwhile, India’s ginger production is estimated to increase by 25-30% because of high prices.

“Production would be good and higher in Karnataka with more farmers planting ginger because of high prices,” Krishna Kumar said.

“Arrivals from Shimoga, Coorg and Wayanad should be good compared to the previous season, KS Mohanan, a trader from Wayanad told FE.

With ginger prices touching record levels last year due to shortage of the commodity some of the farmers are keen on planting the crop again.

“Farmers from Kerala ventured into the neighboring Karnataka from 2003 onwards in huge numbers to reap a windfall. When prices came tumbling down, many lost their investments and farming area dropped down. Now, they are back in business,” he said.