The Hindu Business Line : Ginger steady on good demand

Good quality ginger fetched up to Rs 125 a kg while others were sold at Rs 85 to Rs 90 per kg. Availability has improved following supply from the north-eastern States where ginger is cultivated extensively.

However, supply from Karnataka, major producer in the south after Kerala, the supply is expected to shrink as a result of the drought conditions prevailing there. Land is reportedly not being given on lease for cultivation of ginger, as has been the practice every year, because the crop absorbs a lot of water from the soil, ginger market sources told Business Line.

Non-availability or thin supply from other sources such as China and Nigeria has pushed the international price to $2,200 a tonne. As India turned out to be the only source more orders could come to the country, they claimed.

As the prices have shot up in recent months, the farmers might take up the crop again and that would result in excess/increased availability leading to sharp fall in prices. Price stability at moderate levels could only ensure consistency in production and supply, they said.

The main reasons attributed to the rise in ginger prices are giving up of ginger cultivation by farmers in Nigeria, one of the major producers in the world, and the crop failure in China. Other producers are India, Thailand and Myanmar. In India ginger is grown in an estimated 75,000 hectares with a projected production of around 2.6 lakh tonnes, official sources said.

The oleoresin industry is the worst hit by the Nigerian farmers decision. This sector was importing ginger from the African nation at $400 a tonne.

Kochi ginger is popular and fetches a premium price because of its superior quality. It has less fibre and more powder besides having a lemon flavour.

Steep rise in prices appears to have resulted in a decline in exports of this commodity from India. During April - December 2003, exports of ginger stood at 3,200 tonnes valued at Rs 16.16 crore as against 7,209 tonnes valued at Rs 18.73 crore in the corresponding period in 2002. The average unit value in April - December 2003 was Rs 50.48 per kg compared to Rs 25.98 the previous year.