Ginger Market Faces Prolonged Slowdown Due to Weak Monsoon and Limited Supply
Monsoon Impact on Ginger Supply
As the monsoon season advances, the ginger market is experiencing a notable slowdown. Despite the arrival of ginger from major producing areas like Bangalore, prices have steadily declined. This trend is expected to persist, raising concerns among exporters and traders. With over half of the monsoon season now behind us, the outlook for ginger, particularly dry ginger (Saunth), remains bleak in the spot market.The current monsoon season has been a mixed bag across India. While some states, such as Assam and Meghalaya, have faced flood situations, others in North India have experienced weaker-than-normal rainfall. These uneven weather patterns have adversely affected the ginger supply chain. In key producing regions, the monsoon has not provided the necessary conditions for a robust ginger harvest, leading to a sluggish pace of Saunth lifting in the market.
Decline in Ginger Prices and Weak Supply
In the wholesale fruit and vegetable markets of major cities like Delhi, the arrival of ginger from Bangalore has not stabilized prices. On the contrary, ginger prices have declined. This decline follows an earlier drop, marking a significant decrease from the record highs. The earlier price surge prompted farmers to sell almost their entire ginger crop such anticipating that the high prices would not be sustained. This rush to market has contributed to the current slowdown. As supply has outpaced demand, leading to a steady decline in prices.The supply of dry ginger (Saunth) has been particularly weak, exacerbating the slowdown. In Kochi, a key market for ginger, the arrival of dry ginger has been sporadic, with prices fluctuating due to inconsistent availability. The reduced availability of fresh ginger for processing into dry ginger is a significant factor in this price volatility. Stockists have been increasing their sales of dry ginger, hoping to capitalize on the limited supply. However, the continued lack of sufficient fresh ginger is likely to keep the market subdued.