Aiyaz said the global market also supported a firmer market, with market in China seen higher by 40 % due to more rainfall and poor quality of ginger.
Ginger prices are spiking to record levels due to shortage in supply and farmers holding on to the crop. The market is estimated to firm up till the new crop hits the market from August.
According to data provided by the state-run Spices Board, Indian ginger production for 2017-18 in the advance estimate is pegged at 10,43,130 tonne. Mohammed Aiyaz, a young farmer and administrator of a ginger growers group, told FE that ginger prices have touched Rs 160 per kg at Azadpur market in Delhi .
“Old or mature ginger is retailing around Rs 120-160 per kg while fresh ginger is selling around Rs 100 per kg. The market is likely to rally higher till the new crop arrives in the market by August ,” he added.
Aiyaz said the global market also supported a firmer market, with market in China seen higher by 40 % due to more rainfall and poor quality of ginger. Nandu Chatarsigh Utade from Aurangabad said old ginger was retailing around Rs 120 per kg in the Aurangabad market and arrivals were short in the market. Jis Thomas from Wayanad told FE that the new crop was estimated to be higher by 50-75% in area farmed, with more farmers putting more area under ginger. However, he highlighted the new crop would be impacted due to lesser rains in Karnataka and Maharashtra.
He added the new crop would only marginally higher than the 2018-19 crop due to yield drop. Good returns in the past few years from robust demand prompted Kerala farmers to lease more land for ginger in Karnataka. Currently, Coorg,Shivamoga and Haveri in Karnataka are the happening places for ginger with land leases increasing substantially in Hassan district and its neighbouring places.
Wayanad and its surrounding areas in Kerala, which accounted for bulk of ginger in the 90s, have seen ginger farming coming down rapidly due to labour shortage and higher input cost. But, enterprising farmers from Kerala moved out to neighbouring places in Karnataka.
“The deficit rain in June has already impacted the plant in many farms with the unusually high temperature. Area is more but the production would ultimately depend on the progress of monsoon and its impact,”Aiyaz said.
Domestic consumption of ginger is seen rapidly increasing and so do imports from cheaper origins. Volume of fresh ginger transported to North India has increased dramatically, said a trader from Wayanad. Entry of big retailers and refrigeration facilities has meant increased demand for fresh ginger.