India is increasingly depending on imports to meet its dry ginger demand in view of fall in domestic production. Unremunerative prices for dry ginger and good prices for fresh (vegetable) ginger have discouraged farmers from taking up production of dry ginger, PV Eliyas, a ginger farmer and trader of Kerala’s Wayanad district told Business Line.

He said that the production cost of dry ginger will be over ₹200 a kg and hence, it has turned out to be an unviable proposition. The variety used for making dry ginger is mainly grown in Kerala. As the labour input in the State is comparatively much high, the production cost used to remain at higher levels.

At the same time, fresh (vegetable) ginger prices are, of late, ruling at moderately remunerative levels. Hence, “no farmer in recent years is interested in dry ginger business,” he said. Non-availability of sufficient quantity of dry ginger within the country has compelled the traders to import it from Nigeria and China. This year the crop in China is reported to have failed. Hence, “we are importing from Nigeria at $1,500 a tonne and the landed cost works out to ₹135 a kg,” a Kochi dealer told Business Line . He said the domestic price is in the range of ₹225-250 a kg currently.

A sharp fall in ginger production – both fresh and dry – resulted in a record import of 57,090 tonnes valued at ₹104.09 crore in 2012-13, according to Spices Board sources. Imports were 16,920 tonnes, presumably dry ginger, valued at ₹47.39 crore in 2011-12.

According to the growers, fresh ginger production this year is estimated to be higher by 50 per cent from last fiscal. The current price for vegetable ginger in the market has stabilised at ₹3,400 for 60-kg bag. Growers expect prices to cross ₹4,500 with a possibility of touching ₹6,000 a bag by May/June. .

According to growers in Kerala and Karnataka, for cultivating ginger in one acre an investment of around ₹3.5 lakhs is needed. All the input costs have increased significantly. The yield per acre on an average worked out to 300 bags of 60 kg, i.e., 18 tonnes, they claimed. Meanwhile, Kochi-based traders said non-remunerative prices had led to gradual disappearance of cultivation of the well-known high quality “Cochin Ginger” popular in the international spice markets.

Cochin ginger is considered as one of the best in the world market because of “its characteristic lemon like flavour” and the absence of fibre content, export sources said. It is usually traded at a premium, as this unique variety has low fibre content, special aroma, and pungency. India is the largest producer of ginger in the world with an estimated 7,45,269 tonnes from an area of 1,57,839 ha in 2012-13, according to official statistics.

However, in terms of area Nigeria and China are on top. The main overseas markets of the commodity are Australia, Pakistan, Bangladesh, Saudi Arabia, Yemen, UAE, Morocco, Canada, the Netherlands, Japan, the UK and the US. It is estimated that annually around 1.6 million tonnes of ginger is produced all over the world. India and China contribute almost 50 per cent of world ginger production.

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