Ginger prices dive

The prices of dried ginger have plummeted, as stockists showed urgency in releasing the stock in anticipation of a rise in production next season. The market sources said the price of average-quality ginger has slumped by Rs 1,500 per tonne to Rs 11,000-12,000 last week.

Leading traders said the market already has a carryover stock of 2,000 tonne, and it will come to a terminal market state soon, since the new crop will hit the market within four-six weeks' time.

It is anticipated that the total production may increase this season, even though projected figure is not available with either traders or the Spices Board. A leading trader said production would surely go up, but it is too early to give a projection.

Full swing demand from north India will be witnessed within a couple of weeks, and the market will take a direction only after the arrival of new crop.

On the exports front, India is facing a threat from both Nigeria and China, with the former having a price advantage over the latter.

Nigeria, which has an average annual production of ginger at 10,000 tonne, is supplying ginger to Kochi at a price tag of $1,350 a tonne, while the international price for Indian ginger is much higher, at $3,400.

Manufacturers of value-added products prefer Nigerian ginger for making oleoresin and powder because of the price advantage. But the domestic market is still not ready to accept the quality of ginger that comes from Nigeria. It is the domestic consumption of ginger in India - like that of many other spices - which keeps the price line upward for the commodity.

China, which already exported a large quantity of ginger to India, has hiked prices and, now, it is at par with India. North Indian buyers now prefer to buy Chinese variety of ginger, as its complexion is whiter than that of the Indian variety.