Ginger prices in the Wayanad market in India have plummeted to approximately $12.29 per 60 kg sack. Recent geopolitical tensions, notably the Pahalgam terror attack, have disrupted transportation routes to Afghanistan and Pakistan, contributing to the price drop. Farmers report local retail prices have decreased to around $0.23 per kg from a high of $4.10 per kg. Before the attack, prices ranged between $17.55 and $23.40 per 60 kg sack. In 2023, Afghanistan imported 77.95 tons of ginger from India, while Pakistan imported 57.14 tons.

Ranjan Samy, a ginger farmer, attributes the decline to increased cultivation across India, with Malayali farmers expanding ginger farming into states like Madhya Pradesh, Karnataka, and Chhattisgarh. This expansion has led to a surplus and subsequent price crash. “Now, local people in states like Madhya Pradesh, Karnataka, Chhattisgarh, Goa, and other regions where Malayalis engage in ginger farming have also taken up cultivation, leading to a bumper yield and a subsequent price crash,” he said.

In 2023, ginger prices peaked at $187.20 per 60 kg sack, prompting more cultivators to enter the market. Navarang Mohanan, president of the All India Ginger Farmers Association, noted that only affluent farmers who could hold back their crop benefited from these prices. He stated, “Only the affluent farmers who were able to hold back the crop had benefited from the price rise.”

Farmers face challenges like rising cultivation costs, labor shortages, and unpredictable weather. Ranjan Samy predicts farmers may soon cease ginger cultivation due to the unprofitable market. Mohanan warns that the price decline will impact Kerala’s economy, affecting over 30,000 Malayali farmers engaged in ginger farming in other states.

India remains a leading global ginger exporter, with 24,919 shipments between March 2023 and February 2024. The country produces 385.33 thousand tons annually.

Source: Manorama Online