Ginger prices jump on lower stocks

Growers are interested in selling fresh crop on better price realisation in local markets. They said that the cost of producing a kg of dried ginger would be Rs 100 and a reasonable price range should be Rs 110 -120 a kg. In the Kochi market, the commodity was quoted at Rs 90 a kg for the medium quality dried ginger, while the lower quality is available at Rs 86. Its best quality is available at above Rs 100 a kg.

A sharp fall in ginger stock in April caused a sharp rise in prices as the next production season still away in December.

The commodity's global market is controlled by Nigeria and China. Nigeria offers ginger at $900 a tonne, while the Chinese produce is available at $1,300 a tonne. As ginger in the country is quoted at a higher price of $2,300 a tonne, it is not a major exporter, except to the Gulf countries.

The demand for the commodity shoots up in the winter season, especially from north India. A major part of the domestic demand is met through imports.

A few months back, dried ginger was moving in the range of Rs 5,000-6,000 a quintal due to lower demand. But the picture is likely to change in July-November.