Ginger price nosedive to record low following India-Pakistan tensions

Wayanad: Ginger price hit an all-time low of ₹1050 per 60 kg sack in the Wayanad market on Wednesday. The price, which was staying low in recent weeks, were dragged down further after the Pahalgam terror attack in Kashmir. 

Farmers said that the price of ginger in the local retail market has now fallen to ₹20 per kg after scaling up to ₹350 per kg. Before the Pahalgam attack, the price was between ₹1500 to ₹2000 per 60 kg sack, but it had suddenly dropped to ₹1,000, they added. 

Border tensions between India and Pakistan have contributed to the current fall, as the transportation routes to Afghanistan and Pakistan were disrupted following the Pahalgam attack. In 2023, Afghanistan imported 77.95 tons of ginger from India, whereas Pakistan bought 57.14 tons during the same period.

Moreover, the expansion of ginger cultivation across various parts of the country also contributed to the price decline, said Ranjan Samy, a ginger farmer from Sulthan Bathery. He noted that Malayali farmers migrating to other states introduced ginger farming there as well, significantly boosting the overall supply. "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. 

Ginger prices in India skyrocketed in 2023, with a sack of 60 kg costing as much as ₹16,000. Navarang Mohanan, president of All India Ginger Farmers Association, told Onmanorama that the price rise led to a jump in the number of ginger cultivators across the country. 

Mohanan said that only a few farmers were able to reap the benefit of the record prices. "Only the affluent farmers who were able to hold back the crop had benefited from the price rise," he added.  

Moreover, prices dropped the following year due to an increased supply from many parts of the country. According to farmers, the cost of cultivating an acre of ginger also surged to ₹60 lakh. The situation was further worsened by persistent labour shortages, water scarcity, and an unpredictable monsoon. Despite high investment, farmers were struggling to earn enough, as international trade tensions also weighed heavily on prices.

Ranjan Samy said that the price fall will force many farmers across the country to wind up ginger cultivation soon. "Going by this trend, it will take a few more years to get a good price for ginger," he said. 

Mohanan also expressed similar sentiment saying that the price dip will affect Kerala's economy as well. "Now, the price has touched the nadir, and the number of farmers will continue to dip in the coming years. With more than 30,000 Malayali farmers from Wayanad and neighbouring districts engaged in ginger farming in other states, the fall of ginger prices would badly affect the state's economy," he said. 

India has consistently remained one of the top global exporters of ginger over the past several years. Between March 2023 and February 2024, the country exported 24,919 shipments. With an annual production of 385.33 thousand tons, India ranks among the world’s leading ginger producers.