A few years ago, the ginger price increased dramatically. However, in the past two years, because the production area has grown, the price of ginger is no longer viable for many farmers. In 2014, the ginger price surged up, so farmers gradually increased their production area. They hoped that they could profit from the rising price. However, because the production continued to grow, there was an imbalance in supply and demand, and the price started to drop. The increase in production in the second half of last year will certainly influence the current ginger price.
When we look at the current supply and demand, the demand on the domestic market continues to be low. The export demand is also very weak; from the main production locations, not even half of the ginger is consumed. In the short term, the supply of ginger will continue to exceed the demand. In the long term, because of the increase in production, if there are no extreme weather conditions, there will obviously be a new supply in October. At that time, if there is still no boost in the domestic and export demand, the ginger price will be as bad as expected.
Source: CNR News
