Ginger prices have been soaring, owing to arrival of lesser quantum of the commodity and high demand for the produce.
After six years, the spot price for ginger rhizome touched ₹5,800 a bag (60 kg) in Wayanad on Friday, as against ₹ 1,800-₹2,000 a bag in the corresponding period last year.
The price of ginger had shot up to ₹8,500 a bag in 2013. Farmers are anticipating that the prices would go up further during June-July this year.
Though the demand has increased, availability is restricted to some regions of Mysuru, Shivamogga, Chamarajanagar and Dharwad districts of Karnataka, and some parts of Wayanad in Kerala, trading sources said. The availability of ginger in the market from the northern States and Nepal is also very low, which has contributed to the price rise, sources added.
Moreover, farmers are holding the produce, anticipating a better price in the coming months, the sources pointed out. The average price that ruled the market in the last five years was ₹600 to ₹700 a bag (60 kg), which resulted in the cultivating area reducing considerably this year.
Many a farmer would not get the benefits of the higher price as 85% of the commodity had already been harvested, N. Mohanan, general secretary, Kerala Ginger Growers’ Association, (KGGA) told The Hindu .
According to trade circles in Wayanad, the momentum is likely to persist, considering the low availability of ginger.
The demand-supply gap of the commodity is expected to grow till August-end, when fresh stocks would begin to arrive in the market, a leading trader said.
Ginger cultivation by Kerala farmers on leased land in various parts of Karnataka, Maharashtra and Goa shrank considerably this year, after farmers incurred huge losses owing to the low price.
