Ginger prices fall on cheap China, Nigeria arrivals

Price of dried ginger plummeted further on arrivals of low priced ginger from China and Nigeria. Domestic price of ginger dropped by more than 100 per cent to Rs 6,500-7,000 a quintal as compared with the last season.

During 2005, the average price was at Rs 11,500-12,000 and best quality ginger had fetched Rs 14,500-15,000. The price trends have reversed this season.

China and Nigeria had slashed prices continuosly and for C&F Kochi, China offered ginger at $1,100 a tonne. By the middle of last month, Chinese quotations were above $1,150 and prices fell owing to the bumper crop in that country in the current season.

During last season, prices in China spurted to the level of $3,000. It was estimated earlier that total production in China would be to the tune of 15,000 tonne, but now export traders re-estimated production to the tune of 20,000 -25,000 tonne.

Traders told Business Standard that China has become very aggressive on the export front, resulting in the fall in prices.

Nigeria is a real threat to China as they offer the produce at lowest price level in the global market. The C&F Kochi price of Nigerian ginger is $1,025 which was $1,100- 1150 two, three weeks back.

Prices had dropped in Nigeria by around $400 from last year's price level. It has been estimated that global production of ginger is on the increase and India is not an exemption.

The harvesting season in India has been active for the next few months hence price of ginger plummeted in the domestic markets.

Market sources said that there would be either a steady movement in the price line or a marginal drop is expected in the next couple of months.