Seasonal Demand Fails to Raise Ginger Prices

The dry ginger market is not seeing an uptick in prices, even as South India experiences its second monsoon season. While demand for dry ginger typically rises with the onset of winter, sluggish sales are keeping prices steady. Traders anticipate an increase in demand as the colder season approaches, yet a new harvest from Kerala may prevent any significant price surge in the coming weeks.

Weather Impacts and Flood Conditions Affecting Ginger Supply

Following the heavy rainfall during the south-west monsoon, South India is now in its second monsoon phase. Floods in states such as Assam and Meghalaya affected many agricultural areas, while several northern states saw substantial rain. Despite these weather challenges, the market has not witnessed a strong demand increase for dry ginger, and supply from major producing regions remains limited.

Limited Fresh Ginger Supply Drives Up Prices in Delhi's Wholesale Market

Recent data from Delhi's wholesale market shows fresh ginger from Bangalore has experienced limited availability, causing prices to increase. Currently, fresh ginger prices range from $0,48-0,60 per kg. Previous hikes brought ginger to $0,36-0,42 per kg, prompting early farmer sales. In Kochi, prices recently peaked at $2,42 per kg due to a limited supply available for drying.

A constrained fresh ginger supply for drying has tightened the dry ginger market. Stockists are reporting a rise in sales due to high demand and limited supply, with common dry ginger prices stabilizing between $3,92-3,98 per kg after a recent dip. Sporadic arrivals from Kerala have also kept prices elevated in local markets.

Kerala’s New Harvest to Stabilize Market Prices

In Kochi, dry ginger prices recently saw an increase. Stabilizing prices between $3,93-4,35 per kg due to scarce supply from regions like Siliguri. Market sentiment suggests that a new harvest will be available soon in Kerala, keeping prices stable for the near term. As fresh crops enter the market, a price rise is unlikely in the coming days, especially with no significant pressure on supply from key production regions.

Conclusion: Demand Increased So The Supply

Overall, the dry ginger market remains steady. With minimal price movement expected as Kerala’s new crop enters the market. Despite demand increase during winter, ample supplies and new arrivals are likely to balance prices, keeping them stable through the season.

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