Kochi, May 27 Fall in production of ginger and demand for raw ginger in the domestic market have pushed up the prices in the country.
Increased demand for raw ginger has reduced the production of dry ginger in the country as it has led to short supply for quality ginger suitable for drying. This has, in turn, pushed up prices of dry ginger to Rs 125 to Rs 130 a kg. High cost of production is said to be a reason for farmers not taking up the high quality less fiberous ginger cultivation, especially in Kerala which was hitherto growing the famous Cochin Ginger, market sources told Business Line.
The spices oils and oleoresin extraction units are importing ginger from overseas, especially from Ethiopia and Nigeria, at prices said to be at $700-800.
Chinese ginger which is peeled and look clean and bold because of dipping in some chemicals to preserve it from infestation, were imported at $1,500-1,700 a tonne, they said. Cochin Ginger is considered as one of the best in the world market because of “its characteristic lemon like flavour” and the absence of fibre content. Hence, the demand is primarily for Kochi/Kozhikode ginger.
Unique variety
Cochin ginger usually trades at a premium. But, non-remunerative price consequent to increased imports has resulted in the disappearance of cultivation of Cochin Ginger in the international spice industry, trading sources here said.
On an average, Indian export of ginger was about eight per cent of the domestic production. India is the largest producer of ginger in the world with 3.91 lakh tonnes from an area of 1,10,600 ha in 2005-06 with an yield of 3,537 kg a hectare. However, in terms of area, Nigeria and China are on top.
It is estimated that annually about 1.2 million tonnes of ginger is produced all over the world and India and China contribute almost 49.96 per cent of it.
Though there has been tough competition from China, Nigeria and Thailand, the superior quality Indian ginger used to have steady market, they said.
According to Public Ledger, China’s exports of ginger in the first three months of 2009 jumped by 68 per cent compared with the same period last year, largely due to increased demand from Pakistan and Bangladesh.
Export statistics
Official customs statistics show that China shipped 95,659 tonnes in the first quarter of the year, compared with 56,875 tonnes in the corresponding period in 2008.
The upward shift in exports has come about mainly as a result of increased off take from Pakistan, which has seen its imports jump 52 per cent in the opening three months of 2009 to 11,896 tonnes, from 7,796 tonnes in 2008.
However, the jump in Bangladesh’s purchases over the period is even more pronounced, up 1,029 per cent to 10,633 tonnes from 942 tonnes last year. Malaysia also saw its imports increase 128 per cent to 8,547 tonnes in 2009 from 3,736 tonnes in 2008. Japan remains the top buyer of Chinese ginger with 13,893 tonnes imported in the first quarter of 2009, a 4 per cent rise from 13,290 tonnes in 2008.
Source : Business Line