Lower Ginger Supply from Kerala Pushes Prices Higher

Dry ginger, also known as Saunth, is experiencing firm pricing trends due to a significant reduction in new crop arrivals, particularly from Kerala, India. With summer now underway, the diminished supply of fresh dry ginger is causing prices in wholesale markets to remain strong.

Currently, fresh Saunth in Kochi's wholesale market is priced between USD 2,88–3,12 per kg, representing an increase of USD 0,18–0,30 per kg compared to previous levels. Earlier, prices had fallen by a similar margin. The limited arrivals from Kerala are the main reason behind the current price increases.

Price Movement of Ginger Across Major Markets

In contrast, ginger arrivals from Bengaluru to Delhi’s wholesale markets have experienced slight price reductions. Improved sales activity led to a price decline of USD 0,06–0,08 per kg, settling current prices at USD 0,42–0,46 per kg. However, previously, prices had briefly increased by USD 0,04 per kg.

Record Prices Last Year Cause Current Supply Shortage

Last year's exceptionally high ginger prices of USD 2,40–2,70 per kg encouraged farmers to sell nearly all their ginger crops early in the season. Consequently, ginger mills producing dry ginger are facing shortages, significantly reducing their production capacity.

With rising temperatures, stockists are now actively selling dry ginger to capitalize on limited supplies. Additionally, very limited new ginger arrivals from regions like Siliguri further reinforce the strong pricing trends.

Market Anticipates Continued High Prices

Market sources anticipate dry ginger prices will remain robust in the short term due to ongoing supply constraints and steady demand. Sporadic new crop arrivals from Kerala continue to be priced higher, sustaining the overall strong market sentiment.