ginger

Dry Ginger Market Trends: Summer Impact and Price Fluctuations

Mintec Global
Spread the news!

Seasonal Shifts: Normal Arrivals & Prices Remains Slight Bearish

As summer settles in across the country, the dry ginger market is experiencing some shifts. While the arrival of ginger remains normal, prices have softened slightly due to the relatively high cost. However, indications suggest that dry ginger prices are likely to remain robust in the near future.

During the summer, the demand for dry ginger typically slows down compared to the winter months when its usage peaks. The wholesale fruit and vegetable market in Delhi, for example, is witnessing a decrease in ginger arrivals from Bangalore, leading to a recent price increase to $1,54-1,56 per kg, following a prior decline of $0,06-0,12. This rise comes after ginger prices had earlier soared to a record-breaking $2,40-2,70 per kg, prompting farmers to sell most of their crop.

Market Behavior and Availability

The scarcity of ginger for making dry ginger is notable, with arrivals and availability weaker than usual. Stockists are experiencing increased sales of dry ginger due to these conditions and rising temperatures. In the Kochi market of Kerala, which is a significant ginger hub, the arrival of new dry ginger has not exerted significant pressure on prices.

Pricing Trends and Production Impact

Producers selling around 90-95 percent of ginger at attractive prices has been cited as a key reason for the price hike. In Kochi, the price of dry ginger common, after a recent rise of $18-24, is currently holding steady at $4,56-4,62 per kg. This follows a $0,12 drop due to profit-booking and stockist selling, following an earlier recession of $0,12.

While there is sporadic arrival of new ginger in Kerala, its price remains high. Dry ginger arrival in Kochi is negligible, with prices recently increasing by $0,12-0,18 to $4,80-5,04 per kg. Given these factors, the market anticipates continued strengthening of dry ginger prices in the coming days.

Market Resilience and Future Outlook

Despite seasonal variations and price fluctuations, the dry ginger market shows resilience. While summer may bring some moderation in demand, the overall trend points towards a strong market for dry ginger in the foreseeable future. Buyers and sellers alike will need to stay informed and adapt to market dynamics to make the most of this period.