No Signs of Recovery in Dry Ginger Prices

The dry ginger market continues to face a downturn, with prices remaining under pressure due to excess stock across major markets. Traders are advised to sell their goods at current rates instead of holding onto them, as no significant price improvement is expected before the new crop arrives.

This season has seen an overproduction of ginger, contributing to a glut of dry ginger. Reports indicate that dry ginger production has increased by at least 32 percent, with quality improving in key growing areas like Sagar Line, Cochin, and Eastern India. Even though some late-sown crops are yielding lighter goods, the overall output remains robust.

Excess Supply Weighs Down Prices

The surplus from last year’s bumper harvest, which saw an excess production of 47–48 percent, continues to burden the market. During the season, traders stocked up heavily as ginger prices had been on an upward trend for three consecutive years. However, this has resulted in overstocked warehouses, with dry ginger now struggling to find buyers.

Current prices reflect this oversupply:

• Sagar Line dry ginger: USD 3,24 per kg
• Kanpur Line dry ginger: Sellers have reduced prices to USD 3,00 per kg
• Lower-quality Sagar Line: Trading at USD 2,82 per kg.

Adding to the pressure, Nigerian ginger chips are being sold at very low prices, ranging between USD 1,32 and 1,56 per kg, depending on quality.

Reduced Consumption During Winter

Winter has arrived late this year, accompanied by rainfall over the last 10 days, which has dampened ginger consumption. As a result, both fresh and dry ginger sales have slowed significantly, further contributing to the bearish market. With the new crop expected to hit markets in 1.5 to 2 months, traders anticipate an even greater surplus as stocks from the current season remain unsold. Reports suggest that 50 percent of existing stock will likely carry over, combining with the new crop to create a massive supply glut.

Conclusion: No Immediate Relief for Traders

Given the current market dynamics, there is little hope for a bullish trend in dry ginger prices. Instead, prices may decline further by USD 0,24–0,36 per kg in the coming weeks. Traders should focus on clearing their existing stocks rather than holding out for price improvements, as oversupply conditions are likely to persist in the short term.

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