Ginger prices are again rising as monsoon rains drench central-producing states, leaving a notable impact on fresh and dry ginger. As a result, the market for dry ginger is expected to remain robust in the coming days.
The monsoon is in full swing across South India, including Kerala and Karnataka. After experiencing a 40 percent rainfall deficit in June, South India is now witnessing abundant rainfall in July. Consequently, the wholesale fruit-vegetable market in Delhi has seen a surge. Monsoon rains also reach other states, prompting farmers to sell a significant portion of their ginger crop due to attractive prices.
Notably, the arrival and availability of ginger, including dry ginger, have been lower than usual. This has resulted in a need for more ginger mills for dry ginger production, contributing to relatively weak arrivals from the producing states. Additionally, sluggish buying by stockists has dampened the demand for dry ginger. However, the arrival of new dry ginger in Kochi’s market has yet to exert significant pressure thus far. The primary reason for the surge in ginger prices is that growers have sold approximately 90-95% of their ginger stocks.
The buying trend of millers in Aurangabad has created a subdued atmosphere for dry ginger in other states. In Kochi, dry ginger arrivals have been negligible, leading to a recent price decline. Aurangabad’s saunth (dry ginger) remains appealing to millers due to its relatively lower price. Despite the overall attractiveness of ginger prices, farmers have shown less interest in ginger cultivation in recent years. Nonetheless, ginger’s strength in the market is poised to continue in the upcoming days.