The ginger price continues to be sluggish this year. During the period of late 2020 and early 2021, considerable benefits acquired from ginger cultivation lasted for nearly a year. Due to the continuous expansion of planting areas, the increase in yields, and the impact of a reluctance to sell, growers got an opposite result than the expected high income and high benefits.
Current status of the domestic ginger market
Recently, the ginger supply from production areas has been abundant, but the high-quality supply has been in short. Most of the good ginger at the farms has been sealed and stored, and will not be sold at this stage. At present, what is continuously digested by the market is still the general supply. The flawed ginger continues to drag on the development of the market, and the speed of the movement is not fast either. Poor quality and large quantity are the reasons why the price of ginger is finding it difficult to rise.
The sales market of ginger is relatively stable, and the demand at the end market has not improved significantly. The secondary and tertiary downstream markets only maintain enough to meet the required demand. The supply of good quality ginger in the market is limited, and the traders pick the right source of ginger on demand. The speed of sales is slow. The overall domestic sales volume in 2021 is also lower than that in 2020.
Export of ginger
Relevant data shows that as of November 2021, the export volume of ginger was 412,300 tons, down by 40,000 tons or 8.84% compared with 2020. As usual, the export volume is high when the price is low, while the volume is low when the price is high. However, in 2021, the ginger price continued to decline, and the export volume kept decreasing instead of increasing.
One reason is the impact of the pandemic, which increased the sea freight rate sharply. The flow of goods has been blocked, and the transportation cost has increased. Second, the production from overseas production areas have also increased, such as Thailand, Myanmar, Brazil, Peru, India, Bangladesh, and other major producing countries, which has an impact on the domestic market. Third, international demand is not strong either, and the consumption capacity has decreased, leading to a significant decline in exports. Domestic processing plants will probably start their holidays later this month, and exports will also stop at that time. Currently, the export orders are increasing slowly, even though the price is still low. There is no good news to change the situation of low profits, which is temporarily unable to drive the price up.
With the approach of the Spring Festival, stocking up will start soon. It is expected that the sales speed will accelerate at that time, but the amplitude and time of price increase will still be limited.
Source: Wo de Gangtie