No Hope for Increase in Ginger Prices: Monsoon Slows Down, Saunth Sales Decline
Ginger Market Faces Challenges
Reports indicate that the southwest monsoon has reached Gujarat, but its pace may slow down. While ginger remains strong, the sale of saunth (dry ginger) is declining. The current situation shows no hope for an increase in saunth prices in the coming days.The southwest monsoon arrived in Kerala two days earlier than usual and has now reached Gujarat. However, apprehensions about its slowing pace have arisen. The summer season continues in northern and northwestern India, resulting in sluggish saunth sales. Ginger and saunth sales typically increase during winter. Due to rising temperatures, ginger arrivals from Bangalore to the wholesale market in Delhi have decreased. Recently, ginger prices rose by $0,36-$0,48, reaching $1,68-$1,92 per kilogram. Earlier, prices had softened by $0,12-$0,18. Notably, ginger prices previously reached a record high of $2,40-$2,70 per kilogram. Farmers sold almost their entire ginger crop due to these attractive prices.
Weak Supply and High Prices
Recently, wholesale ginger prices in Kochi hit a new high of $2,40 per kilogram. Weak availability has limited ginger supply for making dry ginger. Consequently, ginger and saunth arrivals from producing states have been weak. Increased temperatures and reduced availability have driven stockists to sell dry ginger. Despite new dry ginger arrivals in Kerala, pressure on the market has been minimal. The main reason for the rise in ginger prices is producers selling 90-95% of their crop due to attractive prices.Currently, dry ginger prices are $4,62-$4,68 per kilogram after a recent rise of $0,18-$0,24. Stockist buying has caused a $0,06 increase, although there was an earlier decline of $0,12. Sporadic new dry ginger arrivals in Kerala have kept prices high. Reports indicate negligible dry ginger arrivals in Kochi, with prices recently falling by $0,24-$0,30 to $4,50-$4,80 per kilogram. No increase in dry ginger prices is expected in the coming days.
The ginger market faces significant challenges due to the slow monsoon and declining saunth sales. With reduced availability and high prices, the outlook remains bleak for an increase in dry ginger prices.
