The closure of the India-Bangladesh border, influenced by India-Pakistan tensions and Bangladesh's political instability, has disrupted ginger exports from Mizoram. This has been confirmed by Starfirm's CEO, Malsawmi.
During a press briefing on May 12, Malsawmi highlighted that Bangladesh, a major importer of Indian ginger, is vital to the trade. The halt in exports has created challenges for exporters and led to a decline in ginger prices across key markets.
"Since the sealing of the Indo-Bangladesh border, ginger prices have been on a continuous downward slide. Rates have plunged to $0.34 per kilo in Delhi's wholesale markets, while prices in Silchar and Siliguri, key hubs for Mizoram's ginger trade, have dropped as low as $0.21 per kilo," she stated.
This disruption impacts Mizoram's rural economy. Many farmers, motivated by promises from the Zoram People's Movement (ZPM) during the 2023 state assembly elections, switched to ginger cultivation. The party pledged a market support price (MSP) of $0.61 per kilo.
The decline in market prices challenges the MSP initiative. Malsawmi noted that the first phase of ginger procurement under the MSP, initiated on February 20, is nearly complete, with limited produce unsold.
The situation is complicated as the second phase begins, with fresh stocks collected at 62 secondary collection centers (SCCs) adding to marketing difficulties. "The problem is compounding. With the market oversupplied and no access to the Bangladeshi market, even the MSP cannot shield farmers from the adverse effects of this crisis," Malsawmi added.
Border restrictions were enforced due to intelligence suggesting possible infiltration by terror groups via Bangladesh. The prolonged restrictions are a bottleneck for Mizoram's ginger farmers and exporters, awaiting normalcy.
Source: The News Mill