Since last month, the dry ginger price has been holding steady in India.
Market Sentiment
Currently, the domestic demand for dry ginger is regular. However, India being one of the leading ginger exporters globally after China, Netherlands, Thailand, and Peru, There is substantial demand for Indian ginger.
Major importers of Indian ginger are Bangladesh, Saudi Arabia, UAE, Morocco, the UK, and the USA. However, the export demand has gone weak with the COVID-19 situation causing a global disruption. Added to this is the increase in freight prices and shortage of containers is another woe to the Indian ginger export market.
As a result, there is a considerable outstanding stock of dry ginger in the cold storage of Karnataka. According to experts, there can be 250 thousand bags of dry ginger in the storage where each bag is about 50 kg.
Hence unless the local demand picks up or the export market opens up in the following years, like before, the prices of dry ginger are likely to get capped.
However, there is good news for dry ginger exporters of India. The EU countries are forecasted to increase their dry ginger consumption for the next 3 to 5 years because it is now considered a healthy ingredient. With buyers from Europe willing to invest and collaborate with dry ginger exporters for a long-term relationship, the Indian dry ginger market can flourish.
According to experts, EU countries are looking for healthy and natural supplements and alternatives to combat flu. Furthermore, with the COVID-19 crisis still lingering, the demand for products that offer natural relief like dry ginger will be in demand and is expected to grow.
As a result, the growing ginger market in the EU can relieve Indian exporters. The countries that are increasing their dry ginger import are:
- Netherland
- United Kingdom
- Germany
- France
- Spain
- Italy
In all these countries, the demand for ginger tea had increased during the pandemic, where the UK and Germany are the largest markets for dry ginger in Europe. In addition, the residents of these countries have also either started adding or increasing the ginger quantity in their dishes because of its health benefits. As a result, the demand for the product has increased, and eventually, the import will increase.
Price
Currently the price is holding stable across India, and the following price was reported for Dry Ginger Whole – Karnataka Origin
$2100 pmt FOB/- A1
$2198 pmt FOB /- Deluxe
$2266 pmt FOB/- Super Deluxe
The price of Dry Ginger NUGC Quality was
| Date | Price |
| December 1 | $2,19 per kg FOB |
| November 30 | $2,18 per kg FOB |
Prediction
The harvesting for the new dry ginger crop will start towards the end of the week, and there are reports that the production is 10 to 15 percent more than last year. As of now, despite the heavy rain in south India, there is no news of any crop damage. Hence, it is predicted that the prices can get capped for the spice with an increase in production and an excess of outstanding stock. It can only change if the export market picks up in the coming year.
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