Indian ginger could soon find its way to the US market with reports of pesticide residue in Chinese ginger.
Traders from the terminal market of Kochi report that after a long break, US traders have evinced interest in buying from India and enquires are pouring in.
Reports say that California health officials detected the pesticide aldicarb sulfoxide in fresh Chinese ginger. The tainted ginger was shipped to Washington, Oregon, California, Michigan, and Louisiana.
According to the report, the problem with the ginger has been apparently known for some time and customs officials have been advised to block its entry into the country. The reports also state that China is the major supplier of ginger to the world and that the US imported bulk of its imports for the last fiscal (32,000 tonne) from China.
In the past few years, cheaper ginger from China and Nigeria had taken much of the market from India. While Nigeria caters to the European market, China exports to the US and West Asian market.
?Indian ginger is of better quality but the premium is keeping them away. While China sells around $1,300 per tonne Indian ginger (dry) is currently trading at $1,900 per tonne,? a leading exporter told FE.
He does not expect much trade as the difference is huge and as the US report spares dry ginger from China. However, if the contamination persists in further shipments, US traders could look at India in spite of the premium, he added. Production shortage and increased domestic demand is likely to keep Indian ginger prices firmer for a while until dry ginger from the new crop arrives in the market during January-February, a trader said.