Ginger prices are likely to come under further pressure with Nigeria and Ethiopia offering ginger at lower prices. Domestic prices are already trading at lower levels due to record production. Traders feel that the market will come under pressure as the up-country consumption declines due to the hot weather.
Good quality ginger has dropped to R75 ?90 per kg at the terminal market of Kochi as against the high of R230-240 per kg achieved during the last quarter of 2010.
Higher returns from ginger farming have led to increase in acreage in the southern states leading to a bumper crop. ?The production is very high and arrivals are good. The fact is that more than 50% of the crop is yet to be harvested in many parts of Karnataka,? KS Mohanan, a leading trader from Wayanad told FE. Kerala farmers have invested huge amount of money and labor in ginger in Karnataka,
he added.
Vegetable ginger or fresh ginger prices have touched R7-9 per kg in Wayanad as against R45-50 per kg during 2010, Mohanan said. Demand will decline as the temperature soars in North India. Ginger consumption increases during the cold weather,? he added.
?Prices are likely to drop in India as Nigeria and Ethiopia have dropped their rates. Currently, Nigeria is selling at $1500 per tonne, while the Indians are selling at $ 1600 per tonne. India will have to reduce prices, ?P Nandakumar, a trade consultant from Kochi said. He feels that the Indian imports of ginger for extraction purpose is likely to be lower this season due to better availability and lower price of Indian ginger.