Ginger exports are on rise with domestic prices easing down due to arrival pressure of a larger crop. Prices have dropped down by 30-40% with good arrivals at the terminal market of Kochi, where most of the export and up-country trade takes place. Export demand is also back with Indian prices coming down and China still short of ginger.

Dry ginger prices for the week ended on February 12, stood at Rs 135.83 per kg, according to Spices Board data. For the week ending on February 5, prices for a kilogram stood at Rs 141.25, while prices stood at Rs 155 per kg for the week ending on 15 January. Prices were in the range of Rs 200-220 per kg during October -November period.

?The crop is very good and arrivals to the market has increased. Prices have eased and even touched Rs 140 per kg for a while but recouped with good export buying,? Ramalingam Vishwanath of GRK Traders told FE.

He expects the market to decline with increased arrivals. Indian ginger is quoted above $ 3,800 per tonne in the global market with Nigeria and Ethiopia around the $ 3,500 per tonne. China is selling around $ 4,500 per tonne.

Indian production of ginger is expected to be higher by 30-40% due to good returns from ginger in the past few years. ?Production of ginger would be definitely higher this season as more people have invested in ginger?, KS Mohanan, a leading trader from Wayanad told FE. Kerala farmers have invested huge amount of money and labor in ginger in Karnataka and production would be definitely higher, he said and added that demand would also keep pace.

Demand for fresh ginger has increased compared to the past. Volume of fresh ginger transported to North India has increased dramatically, a trader from Wayanad said. The entry of big retailers and refrigeration facilities has meant increased demand for fresh ginger.

After several years of declining exports, India could manage an improvement in exports during 2009 and 2010 largely due to crop failure in China. During the current financial year, exports during the first seven months stood at 6,050 tonne as against 2,225 tonne during the same period of last year. Earlier China sold ginger at half the Indian price capturing most of the Indian exports market. Nigeria and Ethiopia are also competitors at the price front but Indian ginger is famed for its quality.

Indian ginger prices during 2011 would mainly depend on the Chinese production, which has been very short in the last two years. India produces 2.75 lakh tonne of ginger per annum, almost a third of the world?s production of 8.35 lakh tonne. The major consuming nations are US, UK, Japan and Saudi Arabaia.

Kerala is still the major producer of fresh and dry ginger in the country, but states like Karnataka, Andhra Pradesh and Sikkim are catching up.