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Ginger prices stable despite good output.


Date: 08-04-2010
Subject: Ginger prices stable despite good output
Kochi: Low imports and good demand have helped ginger market in India to remain stable despite good production. Arrivals at the terminal market of Kochi has remained fairly stable at 200-500 bags per day, but the market has not shown any sign of cooling off because of good demand in both domestic and global markets, Anand Kishore of Kishore Spices said.

Dry ginger is selling Rs 125-130 per kg at the retail markets, while fresh or vegetable ginger is selling at around Rs 45-50 per kg. Anand said that prices would have eased but for lower imports and good export demand for Indian ginger.

A data from the Spices Board showed that import of both fresh and dry ginger has been down in the current financial year. India imports fresh ginger mainly from Nepal through the land route while dry ginger is shipped by processors for conversion and grinding.

Demand for fresh ginger has increased in the domestic markets substantially in the recent past. Volume of fresh ginger transported to North-India has increased drastically, a trader based in Wayanad district of Kerala said.

Entry of big retailers and refrigeration facilities is also leading to increased demand for fresh ginger.

India’s 2009-10 ginger production is estimated to be 25-30% more largely due to high price of ginger in the past few years. “Arrivals from Shimoga, Coorg and Wayanad are good compared to the previous season, KS Mohanan, a leading trader from Wayanad told FE.

With ginger prices touching record levels last year due to shortage of the commodity some farmers have again started growing ginger. However, global production is on the lower side due to erratic weather in the Far East, Anand said. Farmers in China , who produce a third of the world’s supply, are also planting less ginger after years of low prices.

Global ginger supplies have also dropped because of growers trying to cash in on the high prices for ginger seed, reducing the amount planted, and China ‘s strict export laws, traders . “Indian ginger is back in favour because of poor Chinese crop and high price. With Indian ginger at par with China , US and Europeans are looking at more imports from India ,”he added.

Source : Financial Express

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