The countrys production of ginger is expected to be higher by 30-40% due to good returns from ginger in the past few years. India produces 2.75 lakh tonne of ginger per annum, almost a third of the worlds production of 8.35 lakh tonne but the country also consumes a large chunk of ginger and resorts to imports most of the time.
Prices yet again are moving up at all origins due to various reasons. The prices will firm up during the coming days as the grinders are yet to cover any cargo. US, European and North African interest is likely to come up in the days to come. Will not be surprised, if last years highs are broken this year unless alternate supplies are located, Nandakumar P, a trade consultant said. He expects the market to ease a bit by March when the harvesting peaks and then rally higher.
In Nigeria, available stocks are not getting released in the market due to several problems. With commodity prices very high traders are not interested to work on thin margins due to the high risk involved. Even now there are about 35% defaults on committed contracts and suppliers do not bring cargo against confirmation, he said and added that there is no assurance on quality of shipment from Nigeria. Quality of Nigerian and Ethiopian ginger is pathetic.
The oleoresin industry which imports substantial quantity of their requirement is finding availability of quality ginger a big problem, he said. Ethiopian ginger is trading costly and now quoted above Nigeria. The prices have moved up by 100-200% in few months, he said.
Myanmar ginger new crop is just coming out. Local price of fresh ginger has come down a bit but yet to be competitive. Lot of fresh ginger is crossing over to Bangladesh, Pakistan, and China from Myanmar due to the poor post-harvest capacity, he added.
Nandakumar said that the Chinese crop is better this season compared to the previous year but lower than the normal crop.