Rising input costs and competition from cheaper Chinese ginger has seen Indian ginger lose its share in the global market. Exports from the nation are on a decline with ginger being outpriced by 30-40% in the global market.
According to figures released by the Spices Board , exports dropped by 11% in volumes during 2007-08 as compared to the exports in 2006-07. Indian ginger exports for April-May 2008 are down by 63% when compared to the performance of the previous period. Import of fresh ginger has also been higher this season as compared to the previous season. India imports fresh ginger mainly from Nepal through road and most of it is not recorded.
Ginger exports are likely to come down further with dry ginger retailing at higher levels of Rs 100-110 per kg in the terminal market of Kochi. With fresh ginger retailing at a prohibitive cost of Rs 40-45 per kg, conversion into dry ginger has come down.