Ginger Market Shake-Up: Exploring Price Volatility, Supply Chain Disruptions, and Quality Assurance Measures

Mintec Global
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Good Stock Halted

Dry ginger, a staple in many cuisines and traditional medicines, plays a vital role in global spice trade. The dry ginger market is currently facing challenges due to several factors. While there is a good stock of dry ginger in major producing areas like Kochi. The scorching heat has led to a decrease in demand and consumption. This has resulted in partial fluctuations in prices. The impact of weather conditions is significant, with high temperatures in northern and western states, as well as in eastern and central India, affecting both production and demand.

Price Fluctuations and Demand

The price of ginger in Delhi, for example, peaked at $2,64-2,97 per kg during the winter but has since dropped to $1,46-1,54 per kg. This price volatility is partly due to growers selling their stock at high prices. Leaving a limited supply for the production of dry ginger. As a result, the availability of ginger for making dry ginger is expected to decrease. In the Kochi market of Kerala, prices of dry ginger have been fluctuating by $0,12-0,24 per Kg.

Supply and Export Market

Despite normal arrivals in producer and terminal markets, business activity remains limited. The current price of dry ginger is around $6,17-6,24.00 per kg($6,18-6,24 per kg). However, there is no significant expectation of a price increase in the near future. Reports indicate that due to the rise in prices during the current season, there has been a doubling of ginger sowing in Karnataka. Sowing has also begun in Kerala, with expectations of higher sowing this year.

Regulatory Measures and Quality Control

To address quality concerns, the government is planning to increase surveillance of ethylene oxide usage in spices, including dry ginger, for both domestic and export markets. Ethylene oxide, a commonly used disinfectant and pesticide in spices, poses health risks if used in excess. The government aims to ensure that only ethylene oxide-free products are traded in the domestic market, which will also benefit export markets.