Dried ginger prices seen declining next quarter on good harvest

Prices of dried ginger may remain low in the next quarter as good harvesting is expected this year.

According to reports, global production will be like last year and China will also have the same level of production as last year (15,000"�20,000 tonne).

The current indication of prices from China show steady production contrary to the earlier estimates that there would be a steep fall in the output.

Traders said that China had started offering produce for the next couple of months as production season has started there. The C&F price at Kochi $2,200 a tonne, while this was $2,900, a fortnight back. Traders consider this as an indication that China would have the same level of production in the current season.

As harvesting season is at its peak by December it may break the barrier of $2,000 and the per kg price in domestic markets will be scaled down to Rs100 or even below.

According to some projections during the next season price of dried ginger may drop to Rs 75 a kg.This indication is mainly because of good harvest this season and as per recent estimates there would be production of 7 lakh tonne.

A section of the traders believe that it may cross 7.5 lakh tonne this season and production of dried ginger is pegged at 15,000 tonne. Indian quotations will also be at par with global level since there may be a tough season ahead for India and exporters are reacting according global market reality.

The rate India offered for next month is $2,490 a tonne for C&F New York. Prices may scale down further as production season will be in full swing by next month.