The Hindu Business Line : Excess supply drags down ginger price

On the other hand, increased availability from China, one of the major producers in the world, and Nigeria and other producing countries at low prices has pushed down exports from India to 3,600 tonnes valued at Rs 25.88 crore during April - Dec 2005-06 from 7,573 tonnes valued at Rs 32.72 crore in the corresponding period last fiscal, they pointed out.

NO MORE HOT: Ginger harvest in progress at Chittoor in Kerala's Palakkad district. Higher global production has led to fall in ginger prices. Currently, a bag of 60 kg of ginger costs Rs 450 as against Rs 2,000 during the same time last year. - K.K.Mustafah

However, the exports of ginger fluctuate depending upon the crop in other major producing countries.

Currently, China, which offered at $3,200 a tonne last year, was offering at $1,200 a tonne, they said.

The production of dry ginger in the country is estimated at between 20,000 and 22,000 tonnes a year.

During the beginning of the season, to produce one kg of dry ginger, five kg of raw ginger is needed.

"After that, the ratio will be 4:1," they said.

India's major markets are West Asia and the Gulf countries.

Exports to Japan and European countries have dropped following the ban on import of ginger produced using sulphur dioxide, they said.

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

Suppliers of ginger oil and ginger oleoresin are India, China, Indonesia and Sri Lanka.

A small facility also exists 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 price in the world market because of its superior quality.

Ginger produced in the north-eastern States has high fibre content and it is exported mainly to Pakistan and Bangladesh as fresh ginger for vegetable purpose.

Unremunerative prices often dissuade the farmers from taking up its cultivation in most of the producing countries, especially in Africa.

When the prices shot up in 2004-05, the farmers, who had abandoned the crop in certain countries the year before, took up its cultivation in 2005 and that has pushed the prices down this year.

Meanwhile, its cultivation in Karnataka, mainly by farmers from Kerala by taking land on lease, also declined last year, as the landowners were reluctant to give their land reportedly citing some negative impact on the underground water table.

As a result, there was a squeeze in supply leading to sharp rise in prices last year. The situation has changed this year, they said.

World trade in ginger (excluding ginger oil and oleoresin) is estimated at around $190 million and in this, India's share is around 6 per cent. China with about 37 per cent market share is leading the world market for ginger.

However, in ginger oil and oleoresin trade, Indian dominates with about 50 per cent of the market share.

The production in India, which was a meagre 29,290 tonnes from 21,590 hectare 35 years ago, had gone up to 3,17,860 tonnes in 2001-02 and 3,07,370 tonnes from 85,930 ha in 2002-03. This year there is said to be bumper crop.

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