Can India become a significant player in the international Ginger market?

Compared to last year, the dry ginger market went weak for 2021. The overall trend, however, was steady for the spice. Whenever there was a price drop, it had been drastic, and the recovery was not so good. As a result, the prices remained relatively lower compared to last year. Several factors have influenced the price of dry ginger in India.

Overall Scenario Of Dry Ginger For The Year

• April, May, August, and September witnessed a bearish trend in the spot market prices for Dry Ginger.
• There was not much movement in the market for Dry Ginger in December
• The market was appreciative of the spice in January and November
• There were mixed Prices in Feb, March, June, July, and October.

Factors that Influenced The Ginger Market 

• International buyers were opting for ginger from China and Nigeria.
• Since the pandemic, the demand for Chinese ginger has been relatively steady in the domestic and international markets.
• Steady demand increased crop production and enabled China to build a significant gap between its ginger and other origins.
• Increased freight prices, lack of containers, and many stuck containers in the ports have impacted the price of ginger.
• There is a considerable outstanding stock of dry ginger in the cold storage of Karnataka. According to experts, there can be 250 thousand bags of dry ginger in the warehouse, where each bag is about 50 kg.

Current Situation 

• In the last two years, good domestic demand and international demand from dry ginger have expanded this season’s planting area.
• It was reported that in some areas, crop production was doubled.
• India is supplying ginger at a competitive price, enabling it to penetrate the buyer’s markets of Europe, the USA, and Russia.
• India can become a significant player in the international ginger market because Indian ginger is relatively better than its competitor’s crop, i.e., China. Since the COVID-19 pandemic, the demand for ginger has increased internationally because of the healing properties the blub carries.
• A large quantity of Indian ginger was consumed by Bangladesh, Indonesia, Vietnam, UAE, Saudi Arabia, Turkey, Morocco, and Egypt.
• The EU countries that are increasing their dry ginger import are: Netherland, UK, Germany, France, Spain, and Italy.
• For India to become a key player in the ginger market, it needs to improve the process controls required to ensure an efficient supply chain.
• Already, the Indian exporters of ginger have started taking orders from European, African, and Asian countries.

 Prediction 

The harvesting for the new ginger crop was reported to have started towards the end of December. There are also reports of 10 to 15 percent more crop production than last year. As of now, despite the heavy rain in south India, there is no news of any crop damage. Hence, it is predicted that the prices can get capped for the spice with increased production and an excess of outstanding stock. It can only change if the export market picks up in the coming year.

Price Chart

Dry Ginger NUGC Quality

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