Kerala Sees Increased Arrivals, Prices Decline in Dry Ginger

The dry ginger market is experiencing a downward trend as fresh supplies arrive in producing regions like Kerala and Karnataka. Despite the ongoing winter season in North India, demand for this essential grocery item remains subdued, contributing to its current price stagnation.

Clear weather in Kerala has facilitated the arrival of new dry ginger in the Kochi market. Wholesale prices are now hovering between USD 3,24-4,32 per kg, depending on the quality. The influx of fresh supplies has softened the market, leaving little hope for a price increase in the near term.

North India's Winter Demand Falls Short

In North India, despite the cold weather typically driving demand for ginger, sales remain sluggish. Fresh ginger from Bangalore is arriving in Delhi’s wholesale fruit and vegetable market, but prices have dipped to USD 0,48-0,60 per kg, with a recent decline of USD 0,06-0,12 per kg. This is a sharp contrast to earlier highs when ginger prices surged to a record-breaking USD 2,40-2,70 per kg, driven by strong demand and limited availability.

Farmers Sold Out at Peak Prices

Earlier in the year, farmers capitalized on the surge in ginger prices, selling nearly 90-95% of their crop. As a result, stocks for producing dry ginger have dwindled, further affecting market dynamics. Despite sporadic arrivals of fresh ginger, stock levels remain insufficient for significant dry ginger production.

The Kochi market, a key trading hub, has seen dry ginger prices fall by USD 24 per quintal, stabilizing at USD 3,24-3,36 per kg after a larger drop of USD 30 per quintal in previous weeks. While sporadic new arrivals continue, overall availability remains weak, limiting market activity.

Sentiment Across Other Markets

Reports indicate negligible arrivals from other producing regions like Siliguri, further adding to the sluggish market sentiment. The absence of substantial inflows has contributed to muted sales, and stockists are hesitant to engage in large-scale trading.

Conclusion: Limited Prospects for Price Recovery

The dry ginger market shows little sign of improvement in the short term. New arrivals in Kerala and Karnataka have eased supply constraints, but sluggish demand and depleted farmer stocks are keeping prices under pressure. Without a significant shift in market conditions, the market is expected to remain steady at current levels.

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