High prices may hit ginger exports

India's exports of dried ginger, especially to the US market, may be badly hit, as the country's quotations are fairly higher than those of China and Nigeria. India's current tags, higher by $300-350 a tonne over those of China, may badly hit the export prospects in the new year, according to experts.

China has increased its prices to $1,250 a tonne from $1,050 during the first week of December, as the production season has approached the fag end.

Nigeria offers ginger at a tag of $950, while the Indian spice quotes around $1,550-1,600. The higher tags may force the country to depend mainly on the Middle East market, where the Indian variety is preferred traditionally.

Meanwhile, the domestic demand, especially from North India, is at a higher level, thanks to a peak winter.

The rising demand has set the domestic tags at the higher end, as imported ginger is of an inferior quality. A normal green ginger crop at around 700,000 tonne is estimated in the current season that has commenced since November 2006.

However, the production of dried ginger may not increase considerably, as there is a very good demand for green ginger across the country.

The rising demand for green ginger, coupled with an increase in production cost and unremunerative prices, is set to hinder the production of dried ginger in 2007, said experts. c

The best quality now fetches Rs 7,000 a quintal, while the average variety is quoted around Rs 4,500-5,000. A couple of years ago, the prices had gone up to the Rs 15,500 level.

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TOO HOT

INDIA's quotations are fairly higher than those of China and Nigeria

CHINA offers ginger for $1,250 a tonne while Nigeria has priced it at $950. Indian spice quotes around $1,550-1,600

THE HIGHER tags may force the country to depend mainly on the Middle East market

EXPERTS estimate the new year production in the country to be around the normal 15,000 tonne