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G.K. Nair

Landed cost is around Rs 82, while quality domestic produce is ruling at Rs 70

Kochi , Sept 28

Competitive prices coupled with superior quality seem to have pushed up Indian exports of ginger during the current fiscal.

"Our prices are on par with that of China, the major producer," export sources told Business Line.

Chinese offer

China is offering $1,500 a tonne, while the Indian parity is at $1,500-1,700.

As far as quality is concerned, India had an edge over other origins, the sources said.

The Indian production of dried ginger this year is estimated at 20,000-25,000 tonnes.

Exports of ginger during April-July 2006 went up to 3,000 tonnes valued at Rs 13.55 crore against 1,687 tonnes worth Rs 10.69 crore.

The unit value during this period, however, was low at Rs 45.17 a kg compared with Rs 63.34 in the same period last fiscal, according to Spices Board sources.

The export of ginger fluctuated depending upon the crop in other major producing countries.

Imported ginger might not be attractive, as the landed cost of it would come to around Rs 82 a kg, while the good quality indigenous produce is available at around Rs 70.

According to market sources, domestic demand will pick up once winter sets in, normally after Navaratri.

The withdrawal of tax on ginger by the Kerala Government had also helped in keeping the prices below the landed cost of imported ginger, the sources said.

During the beginning of the season, to produce one kg of dry ginger five kg of raw ginger is needed. "After that the ratio is 4:1."

India's major markets are West Asian and Gulf countries.

The main exporters of dried ginger are India, China and Nigeria. he 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. 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 is exported mainly to Pakistan and Bangladesh.

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

When 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 down prices this year.

The world trade in ginger (excluding ginger oil and oleoresin) is estimated at $190 million, of which India's share is 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 of the market.

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