No Major Price Increase on the Horizon

As South India moves through the second phase of the monsoon season, ginger and dry ginger (Saunth) sales have been quieter than usual. While Saunth prices might see a small bump as winter nears, significant price increases don’t appear likely. Fresh ginger supplies are expected to arrive in Kerala around Diwali, which should keep the market steady and limit any major price hikes.

Monsoon's Impact on Ginger Production 

Heavy monsoon rains across parts of South and North India, including Assam and Meghalaya, have even led to flooding in some areas. Despite the intense weather, demand for Saunth hasn’t picked up as anticipated. Limited quantities of ginger from Bangalore have started arriving at Delhi’s wholesale market, causing slight price fluctuations. Initially, prices rose by about $0,36-0,42, but they soon eased by $0,24, bringing the current range to about $0,42-0,48 per kilogram.

Demand-Supply Dynamics Keep Prices Up

Last year saw ginger prices skyrocket to $2,40-2,70 per kg, prompting many farmers to sell off their stocks, which in turn reduced the supply available for dry ginger production. This season, primary production regions have experienced lower-than-normal ginger availability, boosting interest in dry ginger sales among stockists. Although a small number of dry ginger supplies are trickling into Kerala, they’re not enough to impact availability much. The wholesale price in Kochi recently reached $2,40 per kg, while the limited supply keeps dry ginger prices high, around $4,08-4,32 per kg.

What’s Ahead for Saunth Prices?

With fresh ginger arrivals expected in Kerala around Diwali, larger supplies could help stabilize prices, especially for Saunth. At present, the price for dry ginger stands at roughly $3,88-3,94 per kg, after a recent slight dip. For now, there’s no strong indication of an imminent price hike in the coming weeks.

Conclusion

For the foreseeable future, the ginger market is likely to remain stable. While seasonal demand might drive minor increases, a significant price surge seems unlikely given current monsoon conditions and anticipated supply inflows around Diwali. Buyers and traders should keep an eye on incoming supplies, as they could hold the key to any future price shifts.





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