Green Prospects for Ginger Exports - Market Analysis and Future Trends
Early Monsoon Progression Fails to Disrupt Stable Ginger Prices
The dehydrated ginger market (known as Saunth) is showing resilience and promising strength despite seasonal changes and recent market fluctuations. Exporters should note the current trends and anticipate continued market strength. The monsoon arrived in Kerala two days earlier than usual and has since advanced into Karnataka. This early monsoon progression typically impacts agricultural markets, including ginger. Despite the onset of the monsoon, ginger prices have remained stable within a limited range, bolstering the strength of Saunth.Current Market Conditions
Ginger, both fresh and dried, sees increased demand during the winter season. However, recent high temperatures have reduced the supply of ginger arriving from Bangalore to the wholesale fruit and vegetable markets in Delhi. Consequently, ginger prices have softened. This slight reduction follows a previous increase. Historically, ginger prices reached a peak, leading farmers to sell nearly their entire crop. Thus highlighting the reduced availability and increased demand for ginger suitable for conversion into dry ginger.Supply Constraints and Stockist Activity
The current market is experiencing weaker-than-normal arrivals and the availability of ginger from producing states, which is attributed to the attractive prices that encouraged early sales by farmers. Approximately 90-95% of the ginger crop has already been sold, limiting the availability of dry ginger production. This shortage has driven up the prices of dry ginger, with stockists actively purchasing the limited supplies. In Kerala's Kochi market, new dry ginger arrivals have not significantly lowered prices. The main driving force behind the recent price surge is the limited availability of fresh ginger. As a result, dry ginger prices have increased.The ginger market offers substantial opportunities for exporters due to recent climatic influences. Early monsoons and high temperatures have disrupted supply chains, causing a scarcity of both fresh and dry ginger. Consequently, prices have surged as stockists utilize the limited availability, with approximately 90-95% of the crop already sold. This has resulted in heightened demand and increased market prices. Given these factors, the market for dry ginger (Saunth) is poised to remain robust, presenting a fine opportunity for exporters to capitalize on solid pricing and sustained demand in the near future.
