Indian ginger root prices have declined significantly by 20 per cent since the start of the year, down 30 per cent year on year according to Mintec data.
The decline in prices is due to the arrival of the new crop into the market, combined with higher ginger output for the 2015-16 season.
Although Indian ginger production figures for the 2015-16 season have not yet been published, production is forecast to rise year on year, following higher prices seen in the last two years which prompted farmers to increase the planted area for ginger. While production is forecast to rise, a decline in yield was seen at the growing stage due to unfavourable weather conditions during the monsoon season.
In addition, increased output from other regions, specifically China, has resulted in ample supply of ginger. Chinese ginger acreage for the 2015-16 season is also estimated to have increased, with the crop production forecast to improve on last year’s volumes.