Ginger prices rise on supply concerns

Ginger prices in the Kochi market have increased in anticipation of a shortfall in production and active purchases by north Indian traders for the winter season. Prices have increased to Rs 12,000-14,000 a quintal from Rs 11,000-13,000 a week back.

Supply of ginger from the high ranges of Kerala, where almost 70 per cent of country's ginger is produced, to the Kochi market is very low and, hence, there is an acute shortage of quality stuff.

Further, according to reports, production in the high ranges will be badly affected next season owing to incessant rainfall and landslides. This development has further fuelled the rise in prices.

Though some traders have imported ginger from China, Nigeria and Ethiopia, inferior quality of the produce has resulted in very few takers.

While Chinese ginger is available at Rs 8000 per quintal, Ethiopian produce is being sold at Rs 10,000 a quintal. Myanmar, which was very active in the Indian market last season, is not active this time around owing to very high prices of its produce. Also ginger from Nigeria has hit the market, but quality concerns have dented its sales.

Meanwhile, prices of turmeric have been stagnant as there is no stock in the terminal market. The next season will begin by January, 2006 and the indicated price ranges from Rs 5200 to Rs 5500, a quintal.

Last fiscal, total ginger exports stood at 13,000 tonne valued at Rs 59.50 crore, while turmeric exports stood at 43,000 tonne, valued at Rs 156.50 crore.