Monsoon Impact

Half of the monsoon season has passed, bringing varied rainfall patterns across India. Flood situations persist in several states, including Assam and Meghalaya. While some North Indian states, such as Delhi, experience weaker-than-normal rainfall. Despite these conditions, Saunth (dry ginger) prices remain sluggish. However, ginger arrivals from Bangalore in Delhi's wholesale fruit and vegetable market have caused prices to increase by $0,06 to $0,08 per kg. 

• Old ginger from Bangalore is priced at $1,44 to $1,75 per kg, while new ginger ranges from $0,48 to $0,78 per kg.
• Previously, prices had fallen by $0,24 to $0,36 per kg.
• Notably, ginger prices had previously reached a record high of $2,40 to $2,70 per kg due to attractive market rates prompting farmers to sell almost their entire crop.
• In Kochi, dry ginger prices recently fell by $0,06 to $0,12 per kg, currently standing at $4,08 to $4,44 per kg.

Supply Challenges and Stockist Activity

Weaker-than-normal arrivals and availability have impacted ginger supply, making it difficult to produce dry ginger. Consequently, arrivals from producing states have remained low. This shortage, coupled with rising temperatures, has led to an increase in dry ginger sales by stockists. In Kochi, Kerala, the arrival of new dry ginger has not been significant enough to pressure the market. The main reason for the rise in ginger prices is that producers sold about 90-95 percent of their ginger due to attractive prices.

Price Projections and Market Stability

As the monsoon season progresses, the fluctuating weather patterns and inconsistent rainfall continue to impact ginger prices. While some regions face supply shortages, others experience a steady arrival of ginger, stabilizing the market. The recent increase in prices due to limited availability suggests that ginger prices will remain high, but significant price rises are not anticipated in the near future. Stockists continue to play a crucial role in managing supply and influencing market prices.

Ginger prices fluctuate due to varying monsoon conditions and limited supply. While prices have risen recently, a significant increase in dry ginger prices is unlikely in the coming days. The market remains influenced by stockist activities and regional supply variations.