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India: Why Ginger Farmers Are Not Getting Right Price

Mintec Global
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Maharashtra Farmers a going through a tough time. Sometimes, they do not get the right price for the product due to natural calamity. It is being said that while onion prices have come down in the state, it is becoming difficult to calculate its cost price, while on the other hand, the prices of ginger are also decreasing day by day. The state farmers say that there has been a vast decline in the demand for ginger during the last two years, and due to not getting the right price, many state farmers have stopped producing it.

Along with this, ginger growers say that traders are getting more profit from them because the farmers are selling wet ginger, for which they get a low price, and the traders dry the ginger and sell it at a higher price. Reports also state that farmers do not have sufficient facilities for drying the product, due to which they are not getting reasonable prices for their produce. Also, it takes about two months to dry ginger. Not only this, wet ginger requires much space to get dry, which farmers do not have. Farmers do not have considerable time because they need significant money, so they immediately sell their produce to the traders.

According to the data, the price of raw ginger in the state runs in the range of 8 to 10$ per quintal, which is much less than the cost. It is being told that the largest quantity of ginger is cultivated in Aurangabad. Farmers say that its demand and prices have been affected the most due to the lockdown, transportation and fuel cost.

As per the current scenario, raw ginger prices have gone down, and traders and farmers are not benefiting from it, but dry ginger is yet being traded at reasonable prices.

Price Trend

Dry Ginger NUGC quality

DatePrice
May 04$2,04 per kg FOB
April 28- May 02$2,08 per kg FOB
April 25$2,10 per kg FOB

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