How the Monsoon is Impacting Ginger Supply

As the monsoon season winds down in India, dry ginger sales remain slow. However, prices have crept up due to supply disruptions caused by heavy rains and flooding across different regions. It looks like dry ginger will hold strong in the days ahead.

Weather Disruptions Slow Ginger Supply

The monsoon, which kicked off on June 1, is now in its final stage. Flooding in regions like Assam and Meghalaya and heavy rains in North India have slowed the pace of dry ginger sales. Despite steady supplies coming in from Bangalore to major markets, like Delhi's wholesale fruit and vegetable market, ginger prices have risen. Prices are now between USD 0,54 and USD 0,58 per kg, showing an increase of USD 0,13 per kg. Although prices dipped earlier, demand remains cautious.

Limited Availability Keeps Prices High

Earlier this year, ginger prices hit a record USD 2,70 per kg, which encouraged farmers to sell most of their crops. In Kochi, wholesale ginger prices have climbed to USD 2,40 per kg. Lower-than-expected arrivals have tightened supply for dry ginger production. Stockists are benefiting from the shortage, leading to more sales of dry ginger.

Kochi Market Update: Why Prices Aren't Falling

In Kerala’s Kochi market, new dry ginger supplies haven't caused much change in prices. After a recent drop of USD 0,12 per kg, dry ginger is now selling for USD 3,25 to USD 3,40 per kg. With 90-95% of the crop already sold, the supply is limited, helping to keep prices high. Given these factors, dry ginger prices are expected to stay firm in the coming weeks.

Conclusion: Dry Ginger Prices to Stay High for Now

With supply disruptions and most of the ginger crop already sold, dry ginger prices are likely to remain strong. Stockists and traders can expect prices to hold steady as we move further away from the monsoon season.

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