Ginger heads south on northern demand

Ginger prices have risen by Rs 1,500 per quintal owing to increasing demand from north Indian markets coupled with fall in import in recent months.

The price of premium quality ginger, which was Rs 4,000-4,500 per quintal, has now risen to Rs 5,500 - 6,000, per quintal. A leading Kochi-based trader said this correction was inevitable since the prices had plummeted to rock bottom level, two months back.

As monsoon has begun and the upcountry demand for good quality ginger is on the rise, the prices have increased. However, he ruled out further price rise as farmers have enough stock with them.

Market sources expect the prices to move on a steady note till the beginning of the next winter season.

Import of ginger has slowed down as it has turned out to be an unviable option. China, one of the world's largest producers of ginger, offers the premium quality product at $1,200 per tonne.

The domestic tariff is almost the same and coupled with the duty imposed, import proves to be a costly affair. Nigerian ginger costs only $850 -900 per tonne, but the products are of lower quality.

The total ginger production in the country during the last season has been estimated at around 800,000 per tonne, up by 100,000 tonne compared with last year's output.

Market sources said the lower price realisation in the current year might cause a decline in the production during next season.