A big drop in Chinese ginger production this season has boosted prices, particularly in India, which has also had its crop delayed by around two months.
India’s new-season crop usually hits markets in December, reported the Financial Express, but supplies are not expected now until the end of February.
High export demand for the Indian crop on the back of China’s low production could also push up prices.
A hot summer in China and several seasons of poor returns have been blamed for the ginger shortfall, the report said. China traditionally has accounted for about one third of global ginger supplies.
Indian ginger exports have increased around 400 per cent since November last year because of the low Chinese supply.
“We are receiving good response from the Middle East and other non-traditional markets, but domestic prices are very high,” Ramalingam Vishwanath of GRK Traders told the Financial Express.
Ginger production in India is expected to rise 25-30 per cent this year as a result of the good prices, according to the report.
