With ginger prices firming up due to supply shortage, farmers and traders fear cheaper imports from China. Dry ginger prices have crossed the Rs 100 per kg mark in the terminal market of Kochi and continuing supply constraints could lead to more imports, traders said. Ginger farming area has come down to almost a half following a slump in prices in the last two years. Price differential between India and other origins are huge, giving way to viable imports, traders said.
According to the figures of the state-run Spices Board, import of dry ginger has gone up by 30% during April-January 2007-08, compared to the previous season. India imported 3,250 tonne of dry ginger from China and Nigeria during April-January 2007-08, as against 2,500 tonne during April-January 2006-07.
Import of fresh ginger has also been higher this season. India imports fresh ginger mainly from Nepal through the land route with most of it not recorded. According to figures available with the Spice Board, 15,000 tonne of fresh ginger has come through from Nepal with records.
?Domestic demand has been very good for the past three weeks and upcountry demand has fuelled the rally,? Ramalingam Vishwanath of GRK Traders told FE. Price of fresh ginger is as high as 400% compared to the same period in the last season, KS Mohanan, a leading trader from Wayanad told FE. ?A 60 kg bag of fresh ginger is retailing at Rs 1,550 as against Rs 420 in the previous season,? he said.