From around Rs 600 for a 60-kg bag in April, fresh ginger now quotes at over Rs 7,500-8,000 in markets near growing centres of Wayanad in Kerala.
“It is the costliest vegetable right now,” says Jis Thomas of K.K.T. Ginger Traders in Sultan Bathery, Wayanad.
Data obtained from Agmarknet, a portal that tracks prices of agricultural produce in different parts of the country, show that ginger prices have increased from around Rs 4,000 a quintal to over Rs 22,000 now.
Ginger prices have zoomed primarily because many well-to-do growers did not cultivate the spice crop.
“It all boils down to supply-demand situation. It has got nothing to do with the prolonged dry period or any other thing,” says Thomas.
“This is the effect of low prices last year,” said a trading source, who did not wish to be identified, from Wayanad.
“Last year, the production was three times the demand. Hence, prices crashed. That resulted in growers giving a go-by to ginger cultivation,” said Thomas.
However, growers did not shift to any other crop. Ginger growers mostly belong to middle and upper middle class and are well-off.
“Only small farmers cultivated ginger this year,” said the trade source.
Ginger production usually hovers between 7 lakh tonnes and 8.3 lakh tonnes.
However, it is said to have increased to 9.42 lakh tonnes in 2010-11 with the spice being planted on a record 1.71 lakh hectares.
The fall in price was despite a record export of over 20,000 tonnes. Karnataka leads in ginger production followed by Orissa and Assam, according to the Spices Board.
“At least 90 per cent of the demand in South India is met from the ginger grown in the Wayanad region,” the trade source said.
“Such a trend of low prices is seen once in three-four years,” said Thomas. “In fact, prices should have gone up even higher. But ginger imports from China and Thailand have tempered the rise,” he said.
Imported ginger has found its way into almost all States, except Andhra Pradesh and Tamil Nadu.
The next crop could be better, according to Thomas and the source.
“Supplies should improve from August when tender ginger arrives in the market,” Thomas said. “Prices may begin to drop but they are not likely to drop below Rs 3,000 for a 60-kg bag,” he said.
The rise in fresh ginger price has resulted in dry ginger becoming unfeasible, trade sources said.
Five kg of fresh ginger will yield one kg of dry ginger. “Besides conversion costs, you will have to take into consideration labour and other costs. t is simply unviable now,” said the trade source.
“The coming crop will be better but it is definitely not going to be higher like last year,” the source said.