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G.K. Nair

Kochi , Oct 6

LIFTING of quantity restrictions coupled with reduction in import duty by Pakistan and Bangladesh on imports of spices from India has pushed up exports of ginger in 2004-05 and the trend is expected to continue.

Out of the total exports of 13,000 tonnes, 5,830 tonnes went to Pakistan last fiscal while 4,151 tonnes to Bangladesh, Spices Board sources told Business Line. About 90 per cent of these exports are fresh ginger.

The sources said crop failure in these countries also contributed to the increased offtake. Some 40-45 per cent of the country's ginger exports are to Pakistan from Amritsar.

Export of ginger to Pakistan had plummeted to 48.32 tonnes in 2001-02 and to 31.36 tonnes in 2002-03 from 2,885.07 tonnes in 1999-00. This scenario had changed following improvement in relations with Pakistan resulting in removal of restrictions, the sources said.

Export of ginger, however, fluctuates, depending on the crop in other major producing countries.

During April-August of the current fiscal, total exports stood at 2,000 tonnes, of which the shipments to Pakistan are yet to be worked out, they said.

Production this year is said to be a bumper crop. However, heavy rains followed by floods were reported to have destroyed crops in some States, trading sources said.

The crop in China, the world's top producer of ginger, is also said to be bad due to floods. The price quoted by China currently is $3,000 a tonne against India's $2,750.The main exporters of dried ginger are India, China, and Nigeria. The latter two are the major suppliers to Europe. Indian and Nigerian supplies to European market have come down drastically in the recent past. Suppliers of ginger oil and ginger oleoresin are India, China, Indonesia, and Sri Lanka. A small facility also existed in Jamaica, industry sources said.

In the international market, however, the demand is primarily for `Cochin/Calicut' ginger from India. `Cochin ginger' fetches a premium in the world market because of its superior quality. Ginger produced in the North-Eastern States has high fibre content and is exported mainly to Pakistan and Bangladesh as fresh ginger for edible purpose.

Meanwhile, cultivation in Karnataka - mainly by farmers from Kerala by taking land on lease - also declined last year, as the landowners were reluctant to offer their land, citing negative impact on the water table. As a result, there was a squeeze in supply leading to sharp rise in prices last year.

The world trade in ginger (excluding ginger oil and oleoresin) is estimated at around $190 million and in this, India's share is only around six per cent.

China, with about 37 per cent market share, leads the world market for ginger. However, in ginger oil and oleoresin trade, India dominates with about 50 per cent market share.

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