India is likely to benefit in the international market by increasing its production and offering a competitive price in the Ginger export market.
Current Scenario
While India is having an increase in the total acreage of the crop by 20 percent, the unseasonal rainfall might have damaged the standing crop. The exact yield will be known after the harvest completes, which is in full swing currently. Despite the unseasonal rain that can affect the bulb’s dehydration, the increase in the acreage will offer a good supply of the crop. However, according to the experts, the prices are likely to be affected by the condition of the crop as it faced unfavorable weather during its growing period.
The new crop is arriving in China, and old stocks are being released at a discounted rate. According to experts, reasonable destination demands will keep the market steady. Currently, the harvesting of ginger is in process in the country. In the regions of Shandong and Yunnan, the crop is reported to be of good quality and quantity.
Nigerian ginger exporters offer the crop at a discounted rate to balance the logistic issues. The prices of ginger have started to move upward. Good weather has supported the crop production, and the harvest was decent this year.
Price Trends
Indian Ginger market is currently down by 10 percent at $1,800 pet MT compared to last month. The low price has resulted in some overseas demand for the crop, which has buffered the bearish trend in the short term. As a result, the overall price trend in India for dry ginger was stable for January 2022.
The demand for Chinese ginger is good, and the current export price is quoted at $3,400 per MT. But with the increase in the acreage of the crop and the expectation of having a good quality yield, the prices can be capped in the coming days.
The Nigerian ginger market has now stabilized after a downward trend from October. Currently, the commodity is being traded at $2,600 per MT, and the traders are eager to let go of the old stock hence offering a lead time of 2 to 3 months.
For more information, facts and figures, become a member. Click here.