As the monsoon brings relief across India, the ginger market displays resilience, with prices remaining significantly higher than usual. The recent decline in ginger prices does not indicate a looming market recession. The active monsoon across South India, including Kerala and Karnataka, has had a noticeable impact on ginger prices. The region received good rainfall in July, leading to a decline in ginger prices. While the fall may seem substantial, ginger prices remain relatively attractive for farmers, encouraging higher sales.
The reduced arrivals of ginger and dry ginger from producing states have contributed to the weakened stockists’ basket. Due to attractive prices, Farmers have sold about 90-95 percent of their ginger crops, resulting in lower-than-normal arrivals. The reduced supply and the rise in temperatures have contributed to the sluggish sales. Additionally, the market for dry ginger in Kochi has experienced negligible arrivals, leading to a recent decline in prices.
Dry ginger from Aurangabad remains appealing to millers due to its comparatively lower price. This preference has created an atmosphere of lethargy in other states’ dry ginger markets. Despite attractive ginger prices in the country, farmers have shown less interest in making dry ginger in recent years. This trend is likely influenced by various factors, impacting the overall supply of dry ginger. As the monsoon’s influence wanes, ginger prices are expected to find equilibrium, like a pendulum returning to its centre. As we set our compass towards the future, the ginger market outlook is promising, with brighter days on the horizon. With the monsoon’s dance of rain and sunshine, the ginger market stands firm, a testament to its resilience.