Ginger prices are on the upswing due to reports that the coming crop could be lower by almost 30-40%. Fresh ginger prices at the farmgate in Wayanad have spiked to R39-40 per kg and traders warn of severe shortage of dry ginger in the coming season as conversion would be unfeasible at the current rates. India produces 2.75 lakh tonne of ginger per annum, almost a third of the world?s production of 8.35 lakh tonne.
Ginger had touched a low of R7 per kg last year due to a good supply from Karnataka where farmers from Kerala leased land for cultivation.
?Good returns from ginger in past few years due to robust demand prompted Kerala farmers to lease more land for ginger in Karnataka. Currently, Coorg in Karnataka is the happening place for ginger with land leases increasing substantially in Hasan district and its neighbouring places,? KS Mohanan, a leading trader from Wayanad told FE. ?Production would be lower in the coming season and prices would move up to R55-60 for fresh ginger in the coming days. There could be a shortage of dry ginger in the coming season,? he added.
?Fresh ginger prices are ruling high and no peeling process has begun till date for the new season. Most of the processors are staying away and prefer to hold their stocks. In such a scenario new dry ginger will arrive in good volumes only in March for a short period till May,? Anand Kishore of Kishore Spices said. ? It is understood from market sources that the upcoming crop is not only delayed but shorter by almost 40% in comparison to the previous normal years. Many farms have been abandoned, as the prices were not remunerative. Some switched to other crops,? he added.
Lower domestic prices in the first part of the year helped India in exporting more ginger and reducing imports.
