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Production, Marketing, and Economics of Ginger
24 Production, Marketing, and Economics of Ginger
Ginger is an important commercial crop grown for its aromatic rhizomes, which are used both as a spice and as a medicine. India accounts for about 30% of world production, followed by China at 20%. The world production is approximately 0.75–0.8 million tons annually from an area of around 0.3 million hectares. Table 24.1 gives an account of this. During the same period, the export was around 20% of the total world production valued at US$ 105.73 million. Even though India is the largest producer of ginger in the world, the country occupied only the seventh position in export during 1999–2000, after China at the number one position, followed by Thailand, Brazil, Taiwan, Nigeria, and Indonesia. The major importing countries are the United Kingdom, the United States, Japan, and Saudi Arabia. In India, the most amount of ginger-producing states are Kerala, Meghalaya, Odisha, West Bengal, Andhra Pradesh, Karnataka, Sikkim, and Himachal Pradesh. Official statistics on area, production, and productivity, although conflicting and often confusing, are available through FAOSTAT (statistical data of FAO) and SPICESSTAT (Spices Statistical database of the Integrated National Agricultural Resources Information System, INARIS of the Indian Council of Agricultural Research, India, located at the Indian Institute of Spices Research, Calicut, Kerala State, India). However, trade-related data available are relatively complete and make a distinction between dried and fresh ginger. A multitude of processed ginger products entering the world market are not taken into account separately. Despite certain limitations in the availability, this chapter will make use of the time-series data on production, export, and import. The objective of this effort is to obtain a broad indication on the possible changes which have taken place in the economy of ginger production during the last three to four decades starting from 1970 to 1971, and examine further prospects, both national and global, for the crop. From 1975 to 1980, India was the major producer of ginger with a total share of 30–35% of the total production, followed by China at 15%. China increased its share of world production up to 24% in the recent past, but India was on the decline and only produced 28% during this period. Indonesia totaled about 15% of world production, and together these three countries contribute more than one-third of world’s production of ginger. The decline in ginger production in India in the 1970s has a parallel in cardamom production, coinciding with the same period, and while in the case of cardamom, Guatemala surpassed India, in the case of ginger, China started approaching India. Table 24.2 gives a global picture with regard to production by major ginger-producing countries. The supply of ginger on a country-wise basis is computed taking into consideration area, production, and exports. The analysis brings out inconsistencies in yield and expansion of area. In order to make a meaningful analysis, ginger-producing The Agronomy and Economy of Turmeric and Ginger. DOI: http://dx.doi.org/10.1016/B978-0-12-394801-4.00024-7 © 2013 Elsevier Inc. All rights reserved.
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Table 24.1 Ginger Production: A World Scenario Country
Area
Percentage of World Acreage
Total Production
Percentage of Total Production
Traditional Bangladesh China Dominica Dominican Republic Fiji Islands India Jamaica Korea Malaysia Nigeria Philippines Sri Lanka Thailand Newcomers Australia (1990) Bhutan (1980) Cameroon Costa Rica Ethiopia (1993) Ghana Indonesia (1981) Kenya (1989) Madagascar (1992) Mauritius (1985) Nepal (1985) Pakistan (1994) Reunion (1985) Saint Lucia (1985) Uganda (1990) United States (1985) Zambia World Total
14,5344 6,879 13,200 45 400 65 83,220 180 4,255 1,000 17,400 4,700 2,000 12,000 15,261 150 350 1,370 1,600 150 0.00 10,000 55 8 70 12,00 78 30 25 50 125 0.000 31,7055
45.84 2.17 4.16 0.01 0.13 0.02 26.25 0.06 1.34 0.32 5.49 1.48 0.63 3.78 4.81 0.05 0.11 0.43 0.50 0.05 60 3.15 0.02 0.00 0.02 0.38 0.02 0.01 0.01 0.02 0.04 100 100.00
650,330 38,000 160,000 100 1,500 2,500 281,160 620 7,950 2,500 90,000 28,000 8,000 30,000 12,4948 4,500 3,100 7,500 21,000 400 0.01 77,500 150 30 200 3,200 28 500 60 120 6,500 0.01 770,778
84.37 4.93 20.76 0.01 0.19 0.32 36.48 0.08 1.03 0.32 11.68 3.63 1.04 3.89 16.21 0.58 0.40 0.97 2.72 0.05 – 10.05 0.02 0.00 0.03 0.42 0.00 0.06 0.01 0.02 0.84 – 100.00
Figures in parentheses indicate the earliest year of initiating ginger production in the country mentioned. Source: FAO (2003).
countries are grouped into two major categories: (i) traditional producers; and (ii) newcomers. Data in Table 24.1 give a bird’s-eye view of the entire situation. The groupings suggest that up to 1980 there were about 15 countries engaged in the production of ginger. Since ginger cultivation and processing are labor intensive, most of the African countries have neglected this crop, and consequently, they are not very active now in the world market, though there is tremendous potential for the production of this crop on the African continent. But many other countries have entered the
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Table 24.2 Ginger Production in Major Ginger-Producing Countries: A World View (1975–2002) Period
1975 1980 1985 1990 1995 2000 2002
Percentage Share of the Total India
China
Indonesia
Others
30.67 33.47 35.37 31.35 30.11 28.58 27.83
11.68 20.75 12.89 11.05 20.00 23.70 23.98
– – 12.56 16.27 11.34 15.52 15.18
57.65 45.78 39.18 41.33 38.55 32.20 33.01
World Production (mt)
147,213 246,316 390,259 491,153 728,376 962,060 988,182
Source: FAO (2003).
ginger market, as the data in Table 24.1 show. The number has almost doubled to date. The average share of newcomers in total global ginger production during the recent past (1998–2001) is 16.21%, which is on the increase. Among the newcomers, Indonesia, which although it entered the field of ginger production quite late, has made remarkable progress, considering the fact that it entered the field of ginger production only in 1981 (Table 24.1). It accounts for more than 10% of total world production now. It is quite possible that many more countries like Indonesia have entered this lucrative market, but reliable statistical data is difficult to find.
Area Expansion An analysis of the world scenario on ginger production in terms of the acreage covered reveals the following: 1. China recorded the highest growth in acreage during 1991–2002 (10.969%) among all the ginger-growing countries. Indonesia and India, the other major producers, showed moderate growth at 5.6% and 3.006%, respectively, during the same period. 2. Other countries showing considerable growth in ginger acreage during the above-mentioned period are Sri Lanka, (0.26%), the United States (5.92%), Costa Rica (7.57%), Mauritius (1.31%), Bangladesh (1.34%), and Nigeria (5.8%). On the other hand, Uganda showed negative growth (−20.35%), as did Fiji (−8.29%), Pakistan (−13%), and Jamaica (−10.41%). These countries are newcomers. 3. The Philippines, Nepal, and Thailand showed relatively lower decline in acreage at −3.35%, −3.35%, and −4.69%, respectively. 4. An interesting phenomenon observed in terms of fluctuations in growth in acreage is that a high growth rate in a specific region (country) during a particular period is generally followed or preceded by a period of low or negative growth. 5. There is no striking difference between performances of traditional growers and newcomers. In terms of growth in acreage, some newcomers have fared well, whereas some others have failed miserably. The same argument holds true in respect of traditional ginger-producing countries, as well.
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The world scenario inasmuch as ginger production is concerned highlights the recent trends: 1. China recorded the highest growth (11.39%) during 1991–1997, followed by Mauritius (11.15%), and Kenya (9.95%). Next in order are Nigeria (8.56%), Malaysia and Sri Lanka (both 6.78%), Madagascar (5.96%), and South Korea (4.36%). 2. A number of countries have recorded a high rate of negative growth, Uganda with the highest negative growth (−21.67%), followed by Fiji (−17.24%). 3. Between the above two extremes lie the other countries, some showing moderate positive growth, while others moderate negative growth.
Regarding growth, the cyclical nature of the growth pattern was observed over the decades for both area and production. With the exception of Fiji, the nature of fluctuations in acreage and production was almost identical (in terms of both peak and trough) for other countries. Again, on average, the growth pattern in production is also not group specific.
Yield In terms of productivity performance, the world scenario shows the following: 1. Except in Fiji, South Korea, the Philippines, and Nigeria, the traditional growers of ginger, the cyclical growth fluctuations are not that sharp in other countries. 2. The fluctuations are highly erratic in Fiji, recording a high negative growth during 1971– 1980 and a very high positive growth in the following decade, only to come down to around 3% during 1991–1997.
In order to analyze the salient features of major ginger-producing and gingerconsuming countries individually, an effort is made to present country-wise details separately.
India Ginger is grown in almost all the states in India. However, the major ginger-producing states are Kerala, Odisha, Meghalaya, West Bengal, Karnataka, Sikkim, Andhra Pradesh, and Himachal Pradesh. Kerala accounts for the major share of production (19%) and acreage (19%). This figure has remained more or less unchanged during the last more than three decades. Odisha comes after Kerala, followed by Meghalaya. These three traditional ginger-growing states in India account for approximately 40% of India’s production. In South India, although ginger cultivation was confined only to Karnataka State in the earlier years, during the past decade it has been making inroads into the paddy fields of Kerala and Tamil Nadu, including Karnataka. In Karnataka State, ginger is cultivated on a commercial scale in the Coorg and Chickmagalur districts, with
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a reported area of approximately 5000 ha (Korikanthimath and Govardhan, 2001a). Enterprising farmers from the adjoining Waynad district of Kerala State lease paddy fields for ginger cultivation. Fresh ginger harvested during the months of January– March has buyers coming from as far as Nagpur district and Mumbai in Maharashtra State and also from Bengaluru in Karnataka State. A sizeable quantity of fresh ginger goes to the traditional ginger-growing districts of Ernakulam and Kottyam in Kerala State for processing into dry ginger. In Kerala State, Waynad and Idukki districts contribute the most for the export of quality ginger. Incidentally, these two districts have the most intensive ginger cultivation in India. Farmers from Karnataka have a unique practice of putting back a certain portion of harvested ginger in the ground and preserving it as “old ginger” for the succeeding year. This is because of the low ginger price during harvest season. During the following year, this ginger is used for sowing, and more rhizomes develop, and the farmers hope to get more money for the fresh produce and the old produce. The major cultivars used are Himachal, Maran, and Rio de Janeiro (Spices Board, 1988).
Production Economics Examination of the time-series data indicates that the coefficient of variation for the farm price of ginger was higher than the production cost incurred over a period, indicating the huge fluctuation in the market price of ginger in India. This had a greater impact on the production economics of the farming community. The problem can be better understood by the following facts. Farmers buy seed rhizomes for prices as high as Rs 50/kg (approximately US$ 1) at times, but the harvest price could fetch them only one-fifth of this price paid. In order to preempt price-related risks, the farmer cultivates ginger as an intercrop in the main crop, such as coffee. In the major ginger-growing state, Kerala, approximately one-fourth of the cultivated area is in the uplands as pure crop, whereas in the major area (45%) is the garden lands category and the rest is under a mixed cropping system. A study on economics showed that banana + ginger + vegetable (cowpea) intercropping system fetched close to an equivalent of US$ 2000/ha. The benefit–cost ratio was also highest in the banana + ginger mixture (2.28), whereas the lowest benefit–cost ratio (1.56) was recorded in the banana + turmeric system (Regeena and Kandaswamy, 1987). It takes about approximately 10 cents to produce a kilogram of ginger in Kerala. An investigation conducted in Maharashtra to work out the economics of ginger production revealed that the average production cost per quintal (100 kg) is approximately US$ 40 and the estimated cost–benefit ratio is 1.38. The cost of the seed rhizome accounts for approximately 40% of the total cost of production (Gaikwad et al., 1998). Korikanthimath and Govardhan (2001b) conducted an investigation to compare the economics of ginger cultivation in the uplands and paddy fields of Karnataka, which indicated that the cost–benefit ratio is more favorable in paddy fields (1.7) as compared to upland cultivation (1.11). This higher profitability is mainly due to higher productivity (23.5 t/ha) achieved in the paddy fields, when compared to the yield level of 13.5 t/ha in the uplands.
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Trends in Area, Production, and Productivity The time-series data on area, production, and productivity of ginger along with the growth index worked out for the last three decades indicates the following.
Area The area under ginger cultivation has shown remarkable increase during the last three decades, with occasional fluctuations attributed to the ups and downs in price structure. Low profit in a specific year due to unfavorable price structure leads to reduction in the area cultivated, which reflects on the production levels in the subsequent years.
Production India’s production of ginger has been increasing steadily from 29.59 thousand tons/ha during 1970–1971 to 263.17 thousand tons/ha by 1999–2000. This is almost a 100-fold increase. Precisely, this works out to 789% increase, which resulted from a combined improvement in both area cultivated and the concomitant increase in productivity. Both Kerala and Meghalaya put together accounted for more than 65% of the total production in India. If one makes a region-wise grouping, the southern region comprising Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh accounts for 52.4% of production with a corresponding total area of 42.4% in the period from 1990–1991 to 2000–2001. District-wise, ginger production area shows that ginger cultivation is mainly confined to Kerala and Meghalaya. The state-wise area, production, and productivity of ginger for three periods, 1982–1983, 1992–1993, and 1998–1999 show that as against the national average yield of around 3371 kg/ha achieved during 1992–1993, states such as Meghalaya, Andhra Pradesh, Sikkim, and Tamil Nadu have consistently recorded a higher yield. Tamil Nadu achieved the highest yield of 19,450 kg/ha during the period and has attained a record productivity of 31,683 kg/ha during the 1998–1999 crop season. The insignificant change in area in Tamil Nadu is taken care of by a significant growth in yield in the state, thereby helping it to register a healthy growth in production. Nagaland, Mizoram, Arunachal Pradesh, and Meghalaya are the other states in order to achieve higher productivity (more than 5500 kg/ha) during the same period. Andhra Pradesh registered 7164 kg/ha, Meghalaya 5137 kg/ha, Mizoram 5000 kg/ha, while Odisha registered the lowest figures (1990 kg/ha) (DASD, 2002).
Productivity Further analysis of the time-series data between 1970–1971 and 1997–1998 indicated that the yield level of ginger in India increased over the years from 1371 kg/ha during 1970–1971 to 3391 kg/ha during 1997–1998. The yield level which was approximately 1371 kg/ha during 1970–1971, did not show much improvement until the end of 1980, except for occasional fluctuations toward the higher side (up to 1991 kg/ha) during 1977–1978. It seems the yield increase during this period did not contribute
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Table 24.3 Change in Ginger Production, Area, and the Relative Contribution of Changes in Area and Yield on the Changes in Production During Different Periods in India Details
Change in: Production Area Productivity
1980–1981/ 1984–1985 to 1985– 1986/1989–1990
1985–1986/ 1989–1990 to 1990– 1991/1994–1995
1990–1991/ 1994–1995 to 1995– 1996/1999–2000
40.22 18.28 19.54
26.84 10.10 15.01
30.47 21.47 8.16
40.48 58.83
73.11 29.49
Change in production due to change in: Area 49.66 Productivity 52.81
Analysis based on the method followed by Librero et al. (1988).
much to the overall increase in production. The increase in production during that period was largely due to an increase in cropped area. However, the productivity level improved from 1980 to 1981 onward and reached an average of 3188 kg/ha from 1990–1991 to 1998–1999. Productivity registered during 2000–2001 was more than twofold the productivity of 1970–1971. The estimated growth index for the year 1998–1999 in production was 254% over the base year 1970–1971. To ascertain the impact of area expansion and productivity on the overall production during different periods, period-wise data were analyzed using a simple technique followed by Librero et al. (1988). Results show that there is a positive sign in all three parameters, indicating the steady improvement in production due to both area expansion and productivity increase. Results are shown in Table 24.3. However, the detailed component analysis revealed that the change in productivity had a more positive role in the first two periods, whereas in the last, area expansion played a major role in the expansion of production.
Growth Estimates In order to obtain the long-term trends in area, production, and productivity in the major ginger-growing states in India, semilogarithmic growth equations were estimated, which indicated that the overall trend in the area under ginger cultivation registered an average annual growth rate of 4.3% for the period 1990–1999. Growth in production was at the rate of 6.11% during the same period, indicating a slight improvement in productivity, which was approximately 1.82% for the period.
Production Constraints A status paper prepared by the Spices Board (1990) on the ginger crop highlights the fact that mostly small and marginal growers cultivate ginger in India. They face enormous problems and constraints which hamper the ginger productivity. Major
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production constraints in ginger cultivation listed by various investigators, including the Spices Board of India (Kithu, 2003; Selvan and Thomas, 2003) are: 1. Low productivity (3391 kg/ha) compared to an achieved average productivity of more than 1 lakh kg/ha elsewhere in the world. 2. Prevalence of innumerable traditional cultivars, which are mostly poor yielders. Absence of an adequate supply of planting materials of improved cultivars. 3. Being a predominantly rainfed crop, failure of rains, and increased labor costs are some of the factors responsible for the higher cost of cultivation of ginger in India. 4. Nonadoption of integrated plant protection measures to control pests and diseases, such as rhizome rot, which cause heavy production and postharvest losses in the crop in many parts of the country. 5. Lack of suitable postharvest processing facilities and poor marketing facilities, especially in the northeastern states of India, which result in poor returns to the farmers. 6. Lack of remunerative prices for the produce in subsequent years, which leads to diminished enthusiasm of the farmers to cultivate ginger, which eventually leads to the neglect of the crop in the country, adversely affecting overall production and growth rate of the crop.
Taking the above points into consideration, there is an imminent need to develop cropping systems with ginger as a component. Although the crop is being cultivated as an intercrop in coconut and arecanut plantations, the researchers have yet to develop ideal cropping systems focusing primarily on the cost–benefit ratio for the famer, and other associated environmental considerations, such as soil degradation.
China In China, ginger is grown extensively in all the central and southern provinces. It is cultivated as either an annual or perennial crop. China emerged as the second largest producer during the year 2002 (23.98% of the total world production), next to India. During 1990, China’s production was 54,284 t, accounting for 11.05% of total world production. Within the next decade, there was a more than fourfold increase in production and the production level reached one-fourth of the total world production. This achievement is primarily due to high average productivity of 115,104 kg/ha, an unheard of production level anywhere in the world, and the highest level was 120,641 kg/ha in 1996. Since Chinese ginger contains less fiber, the rhizomes being bigger in size, and the end product competitive in price, Chinese ginger commands the first place in the world production. In 1994, China exported 52.05% of total production and this continued until 2000, which accounted for 61.59% of total world exports. Of the annual export of 91,000 t, Chinese export accounts for more than 61%. Many importing countries prefer Chinese ginger for its price competitiveness and quality of produce. Ginger from China is also exported in crystallized form in earthenware jugs and as syrup in wooden kegs. Harvesting of ginger in China commences in April and extends up to June. Harvested ginger is transported to processing plants in Chiang Rai for export, mostly to Japan. Young ginger is preserved in vinegar bottles and consumed as pickles.
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Table 24.4 Australian Ginger Yield Harvest
Time of Harvest
Yield (t/ha)
Early Early-Late Late
Late February–Early March April–August Mid June–Early October
12–50 20–50 38–75
Australia Commercial cultivation of ginger in Australia was first started in Buderim in Southeast Queensland as early as the 1940s mainly for the domestic ginger market. Ginger is now grown in the Caboolture, Nambour, and Gympie areas for processing at Yandina. Twenty-four growers currently represent the Australian ginger industry with approximately 150 ha under cultivation. The bulk of production is processed, with smaller volumes sold in the domestic and export markets. Buderim Ginger Ltd. is the only ginger-processing facility in Australia. This factory, through production quotas and a differential pricing system, controls the quality and quantity of ginger production for processing. Most growers derive the majority of their income from processed ginger. A few also supply the domestic fresh ginger market, and only two to three growers export fresh product. In 1987, Royal Pacific Foods began exporting Buderim ginger to the United States. Now the Australian products under the brand name “The Ginger People” are freely available on the market shelves of many wellknown food chain stores the world over. The Australian ginger farmer has achieved a reasonably higher productivity against the world average as shown in Table 24.4.
Thailand Thailand produces about 32,000 t of ginger annually. The crop is cultivated extensively in the northern part of the country, especially in the mountains. Ninety percent of the production comes from the hills. Thailand has had a slow increase in ginger production. Without much improvement in the recorded productivity of 25,000 kg/ha, improvement in the overall production was achieved through area expansion. The estimated normal growth rate for the period 1990–2002 was 2.7%, 2.81%, and 0.10%, respectively, for area, production, and productivity. Ginger from Thailand is noticeably distinguishable compared to others because of its plumpness, roundness, and short internodes. The popular dried “Golden” variety from Thailand is packed and exported.
Marketing Products of Commerce Three primary products of ginger rhizome traded nationally and globally are (i) fresh ginger; (ii) preserved ginger in syrup or brine; and (iii) dried ginger.
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Preserved ginger is made from the immature rhizome, whereas the pungent and aromatic dried spice is prepared from harvesting and drying the mature rhizome. Fresh ginger, consumed as a vegetable, is harvested both when immature and mature. The preserved and dried products are the major forms in which ginger is internationally traded. Fresh ginger is of less importance in international trade, but this is the major form in which ginger is consumed in the producing countries. Dried ginger is used directly as a spice and also for the preparation of extractives, ginger oleoresin, and ginger oil (ITC, 1995). Commercial ginger in India is graded according to the region where it is produced, number of fingers contained in the rhizome, its size, color, and fiber content. Among the Indian States, it is only in the State of Madhya Pradesh, where grading of ginger is done. The first grade, popularly known as “Gola” in the local market, comprises very bold and round bits of dry ginger, which have maximum dry matter and low fiber content. The second grade, known as “Gatti,” includes bits of bold, round to oblong pieces, which are smaller than the “Gola” variety. The third and fourth grades are smaller bits with low dry matter and high fiber content (Jaiswal, 1980). For export purposes, Calicut and Cochin ginger are graded into special, good, and nonspecial grades, depending on the size of the rhizomes and the percentage of the presence of extraneous material. Dried ginger has been traditionally traded internationally in the whole or split forms and is ground in the consuming centers. Export of the ground spice from the dried ginger-producing countries is on an extremely small scale. The major use of ground dried ginger on a worldwide basis is for domestic culinary purposes, whereas in the industrialized Western countries it also finds extensive use in the flavoring of processed foods. Ground dried ginger is employed in a wide range of food stuffs, especially in bakery products and desserts (Anonymous, 1996). Ginger oleoresin, an important value-added product, is obtained by solvent extraction of dried ginger and is prepared both in certain industrialized Western countries as well as in some of the spice-producing countries, most notably India and Australia. This product possesses the full organoleptic properties of the spice— aroma, flavor, and pungency—and finds similar applications as in the case of ground spice in the flavoring of processed foods. The oleoresin is also used in certain beverages and to a limited extent in pharmaceutical preparations. The new process developed by the Regional Research Laboratory in Thiruvananthapuram, Kerala State, India, for extracting oil and oleoresin from fresh ginger, will lead to a higher recovery of the oil superior organoleptic qualities, and will drastically reduce spoilage of fresh ginger during harvesting season. This technology, which is highly suitable for the northeastern states of India, can utilize the cheap raw material available during the harvesting season to convert it into high-priced value-added products. The operating cost of the fresh ginger-processing facility is much lower than that of conventional plants. Further, drying, peeling, and so forth are dispensed with, and because the processing is done during the ginger harvesting season, the raw material inventory can be reduced drastically. It is expected that adoption of this new technology can boost the country’s prospects in adding value to the export of Indian ginger. Ginger oil is distilled from the dried spice mainly in the major spice-importing countries of western Europe and North America, as well as in some of the spice-producing
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countries such as India. This product possesses the aroma and flavor of the spice but lacks the pungency. It finds its main application in the flavoring of beverages and also is used in confectionery and perfumery. Preserved ginger is prepared mainly in China, Hong Kong, Australia, and India, but smaller quantities of fresh ginger are processed in some importing countries as well. It is used both for domestic culinary purposes and in the manufacture of processed foods, such as jams, marmalades, cakes, and confectionery (Sreekumar and Arumugham, 2003).
Market Structure Regarding the market structure, there are a number of firms and individuals actively participating in the ginger trade, especially in the case of dried ginger. A large number of brokers, dealers, and various other intermediaries between the dealer and the consumer or even within dealers, exist both in exporting and in importing countries. Singapore, London, New York, Hamburg, and Rotterdam are major trading centers. In the case of preserved ginger, Hong Kong is the major trading center. Fresh ginger is marketed through the fruits and vegetables trade network. The market framework indicated that in terms of the ratio between farm harvest price and retail price, it was observed that the ratio was higher in 1989 as compared to 1995. Moreover, fluctuations in the ratio were also less in 1989. The ratio between the farm harvest prices and wholesale prices has also gone down in recent years, indicating that the producer is able to obtain a better price for the produce, and there is less exploitation by middlemen in the ginger business.
Factors Controlling Demand/Export A major factor that contributes to the export/demand potential of a commodity is quality. In ginger, quality parameters are fiber, volatile oil, and nonvolatile ether extract contents. Ginger grown in various parts of the country varies considerably in its intrinsic properties and its suitability for processing. This is perhaps more important with regard to preparing dried ginger than preserved ginger. The rhizome size is relevant in particular with regard to processing of dried ginger, and medium-sized rhizomes are generally the most suitable. Some areas grow ginger types yielding very large rhizomes, which are marketed as fresh ginger, but are unsuitable to convert to the dried spice, owing to their high moisture content. This causes difficulties in drying; frequently a heavy wrinkled product is obtained, and the volatile oil content is often low and below standard requirements. From the above point of view, ginger produced in certain pockets of Kerala is in more demand and has more export potential in the global market.
Indian Dried Ginger Two types of Indian ginger entering the international market are (i) Cochin and (ii) Calicut, named after two production centers and major ports of the Malabar Coast in Kerala State, India. The bulk of Indian exports is rough-shaped, whole rhizomes.
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In addition to this, some bleached or limed ginger is also produced, but this is mainly exported to the Middle East, as it is not favored in European and North American markets. Cochin and Calicut ginger have volatile oil contents in the range of 1.9–2.2%. They are characterized by a lemon-like aroma and flavor, which is more pronounced with the Calicut spice. They are starchier but are almost as pungent as Jamaican ginger. Their nonvolatile ether extract content is about 4.3%. They are widely used for blending purposes, and ginger beer manufacturers prefer these types (Spices Board, 1992).
Economics of Dry Ginger Production In India, production of the dried ginger of commerce is confined exclusively to Kerala State and the product is of two types—Cochin and Calicut. Cochin type, preferred over the Calicut type, is grown in central Kerala, mainly concentrated in the Ernakulam and Idukki districts, while the Calicut type is confined to the Malabar region, including the Waynad district in northern Kerala State. There is no other recognized commercial variety of dried ginger produced in other parts of India other than the Cochin and Calicut types. Kerala ginger is considered to be superior because of its low fiber content, boldness, and characteristic aroma and pungency. Ginger produced in other parts of India have more fiber, which are largely used for domestic consumption in the form of green ginger. Kerala State accounts for over 60% of the total dried ginger production and about 90% of India’s ginger export trade. In contrast to Jamaican ginger, which is clean peeled, Indian dried ginger is usually rough peeled or scraped. The rhizomes are peeled or scraped only on the flat sides of the hands; much of the skin between the “fingers” remains intact. The dry ginger so produced is known as the rough or unbleached ginger of commerce, and the bulk of the dried ginger produced in central Kerala consists of only this quality. Sometimes Indian ginger is exported unpeeled. For the foreign market, both Cochin and Calicut gingers are graded according to the number of “fingers” in the rhizomes. They are classified as follows: “B” for three fingers, “C” for two fingers, and “D” for pieces. In addition to these well-known types of Indian ginger, another type, Kolkata ginger, is occasionally seen in the market as well (Pruthi, 1989).
World Scenario As ginger is mainly used as a spice and condiment, its per capita consumption is not high enough to sustain its world-level production with the growing number of new ginger-producing countries taking recourse to the international trade in ginger. However, the market information indicates that there is a “hot trend” in the US market, which means an escalating demand for many other spices like black pepper, chilies, and ginger. This is a clear reflection of the changing food habits of the Americans, which is veering toward spicy food, as compared to the earlier bland types. This could also emanate from the new ethnic mix in the population. Chinese food and Indian curry, in which ginger is a principal ingredient, are increasingly
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being favored by the Americans. There is also a growing demand for ginger products worldwide. A recent development noted in ginger trade is the increasing use of ginger oils, oleoresins, and powdered and processed ginger in major ginger-importing countries, especially the United States and Europe.
Main Suppliers Major ginger exporters are India and China. Others which also export are Indonesia, Brazil, Sierra Leone, Australia, Fiji, Nigeria, and Jamaica. Indonesia, Taiwan, China, and Thailand are major exporters of fresh ginger. Important suppliers of preserved ginger are Hong Kong, which reexports refined fresh ginger, and Australia (ITC, 1995). In the world trade, there are two categories: (i) producer exporters (countries engaged in ginger cultivation which usually export after meeting the domestic consumption); occasionally these countries may also import to meet domestic needs; and (ii) countries which reexport.
World Trade Distribution Channels Specialized importers still play an important role in the global ginger trade. A list of the importers can be obtained from the International Trade Center (ITC).
Dry Ginger The traditional distribution system for dry ginger has declined as a result of the increase in purchase by dealers and processors directly from the source of production. There has also been an increase in trade in some countries among certain ethnic communities. Asians, in particular, have developed their own system of distribution based on direct trading with the producing countries and a network of small retail outlets.
Fresh and Preserved Ginger The marketing structure for fresh and preserved ginger is similar to that of vegetables in India. The recent rise of supermarkets in India has eroded the position and clout of wholesale dealers as some importers sell directly to supermarkets. In some importing countries, however, ginger in its fresh form is seen almost exclusively in shops catering to ethnic communities.
Export During 1994, China contributed 52.05% of total ginger export worldwide, followed by Thailand at 16.77%, Indonesia 9.73%, Brazil 6.24%, Taiwan 3%,
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Costa Rica 2.23%, India 1.98%, Nigeria 1.61%, Vietnam 1.37%, Malaysia 1.36%, and the United States 0.93%. Clearly, despite India’s preeminent production level in the world, it only contributed a small percentage of world export in 1995. China and Thailand maintained top export positions until 2000, in fact, showing a surge by China at 61.59%, followed by Thailand at 23%. The ginger export of Jamaica and Sierra Leone is considered to be of high quality on account of their superior flavor and clean appearance. However, the price of Jamaican ginger is quite high, which has led importers to search for cheaper alternatives. Today, the ginger from Australia is regarded as being of high quality due to its standardized and clean appearance and steady price. Grinders have favored Chinese ginger, but the use of bleaching agents and sulfur dioxide has adversely influenced Chinese exports to Europe and North America, as they are highly conscious of additives in food stuff. In order to examine the trend in returns from trade earned by the exporting countries, Datta et al. (2003) have used a simple index (VADD) defined as follows: VADD
Unit Value of Exports
Unit Value of Imports
where Unit Value of Exports = Total Value of Exports/Total Quantity Exported Unit Value of Imports = Total Value of Imports/Total Quantity Imported
Datta et al. (2003) have ranked all the countries in terms of VADD in decreasing order and reported that: 1. Out of the top 15 exporting countries, only 3 belong to the producer–exporter group. The rest are all from the reexporter group. 2. Only two countries are the traditional producers. 3. Of the major producers, India ranked 40th with a VADD of 0.38, followed by China at 44th place with a VADD of 0.21. In the case of Indonesia, the VADD estimate turned out to be negative at −0.13, meaning that Indonesia imported ginger at a higher unit value than it exported. 4. Thus, reexporters have, in general, succeeded in achieving a greater value addition to their export of ginger into the world market.
A further analysis of the import–export reexport trade showed that the unit price (US$ 2.18/kg) earned by the European Union (EU) countries (reexporters) from export is much higher than the average unit price (US$ 1.53/kg) earned by other producer exporters to EU countries. The Netherlands, Germany, and the United Kingdom are the major reexporters of ginger in Europe. Obviously, value addition to the imported material turned out to be the biggest money spinner to the EU countries. This is also a good and clear lesson to be learned from the world ginger trade, and that is unless the producer countries have a clear road map to the valueaddition process, merely producing ginger in large quantities is of no avail for reaping great pecuniary benefits from the ginger trade. This is a fundamental lesson all the developing countries have to learn in world trade. Extending this logic further, many examples can be cited in world agricultural trade, where the reexporter and not the producing countries benefit from world commodities trade. For instance, the
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467
best cocoa is grown in Africa, either in Ghana or in the Republic of Cameroon. But the pecuniary benefits in large measure go to Paris, not to the toiling African farmer sweating it out under the scorching sun. It is here that technology plays a crucial role. Many examples can be cited to prove this point. Datta et al. (2003) have analyzed the export performance of Indian ginger economy between 1961 and 1996, which shows the following: 1. The physical volume of exports has increased approximately 2.96% annually, whereas the annual growth in value terms works out to be approximately 10%. The annual growth in the unit price realization over this period works out to be approximately 6.9%. 2. At a decadal disaggregated level, however, the performance of ginger export from India does not appear encouraging. There is a steady decline in unit value realization from ginger exports. During the 1960s, the unit value realization grew at an annual rate of more than 19%, despite the fact that there was a negative growth in the physical volume of exports. The growth in the physical volume of exports picked up considerably during the 1970s, although at the cost of a decline in the growth in unit value realization. The 1980s witnessed a fall in the growth rate of both of these attributes. During the first half of the 1990s, however, a spurt in the growth of physical exports is observed, accompanied by an almost stagnant unit value realization, despite considerable devaluation of the Indian rupee (Indian currency, which is now trading (at the time of writing this book, 2012) at Rs 55 per US$, a depreciation of almost 20% during the past few months).
Export Instability In order to estimate instability in ginger exports in terms of quantity, value, and price, an instability analysis was done using the time-series data, and the results are presented in Table 24.5. It can be observed from Table 24.5 that there was instability in the case of volume of ginger exported, value, and unit value of ginger export. The instability was relatively higher in the case of the volume of ginger exported (72.91%) compared to the value of the export (57.41%) and the unit value of the export (29.15%). This instability index was a close approximation of the average year-to-year percentage variation in the three parameters studied, which was adjusted for the trends.
Composition of Indian Exports As far as itemwise export of ginger from India is concerned, there has been a marked improvement in recent years. More than half of the total export value is earned by
Table 24.5 Instability Indices (Coppock’s Instability Index) of Ginger Exports (1970–2000) Particulars
1970–1971 to 1979–1980
1980–1981 to 1989–1990
1990–1991 to 1999–2000
1970–1971 to 1999–2000
Volume of export Value of export Unit value of export
47.95 51.60 49.44
60.37 62.35 68.81
84.71 63.50 34.62
72.91 57.41 29.15
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Table 24.6 Contents of Indian Export Basket (1990–1991 to 1999–2000 Average) Details
Dry ginger Fresh ginger Ginger powder Ginger oil Ginger oleoresin Total
Percentage Share of the Total Quantity (Mt)
Value (Approx. US$)
Unit Price (Approx. US$) (Per kg)
4,587.80 10,138.07 418.32 7.63 59.63 15, 211.45
405,000 200,000 20,000 18,000 12,000 8,000
90 Cents 10 Cents 90 Cents 40.00 US$ 22.00 US$ 60 Cents
Source: Spices Board (2008).
dry ginger, which accounts for 30.16% in terms of quantity (Table 24.6). Fresh ginger, though, accounts for 66.65% of the total quantity exported; in terms of value, the percentage share is 24.67. Ginger oil and oleoresin are the other products exported that have fetched a high value. As in the case of reexporting countries, especially EU countries, India has the potential to strengthen the processing industry to add more value-added products onto its export basket. India exports a sizeable quantity of fresh ginger through land custom stations in the northeastern states to Bangladesh. Although this export channel provides an opportunity to market the exportable surplus across the border at a reasonable price, whenever the price goes up, Bangladesh turns to a cheap supply from China and Indonesia. The same is the case with the other neighboring country, Pakistan (John, 2003).
Direction of Indian Exports Until the end of 1980s, more than 30% of Indian exports was to Arabian countries, in general, which has shown a declining trend ever since then, and India is finding a new market in Pakistan and Bangladesh. However, these countries turn to other sources, wherever the prices are competitive. During 1991, India exported more than 49% to Pakistan. However, during 1999–2000, Pakistan’s share of Indian import declined to 33%. A similar situation was witnessed in Bangladesh as well. Other main markets for Indian ginger are Saudi Arabia, the United Arab Emirates (UAE), Morocco, the United States, Republic of Yemen, the United Kingdom, and the Netherlands. To analyze the concentration of ginger exports to various countries, both in terms of quantity and in value of export markets, the Hirschman index was estimated, which is presented in Table 24.7. Generally, the index number above 40% is considered to be a high concentration. Here, the estimated index for quantity is more than 40 during all the three periods indicating higher concentration. In the case of value as well, the index was more than 40% in the first period, and it was nearer to 40% in the remaining two periods, as well. This indicates that the country has a set of markets, which prefer Indian ginger.
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Table 24.7 Hirschman Index for Export of Ginger Period
Particulars
Quantity
Value
1981–1982 1991–1992 1999–2000
Volume of ginger export Value of ginger export Unit value of ginger export
44.35 48.52 48.42
45.47 38.63 36.87
Export Promotion Program The Spices Board, Government of India, implements a number of programs to promote ginger export. These are: 1. Assistance in establishing improved cleaning and processing facilities. 2. Support for setting up high technology-assisted processing facilities. 3. Assistance in establishing and strengthening in-house quality laboratories to test various quality parameters. 4. Assistance for new product/end use development. 5. Assistance for improved packaging. 6. Assistance for undertaking promotional sale tours and participation in international spice fairs. 7. Support for promoting branded consumer-packed ginger in identified markets overseas. 8. Support for organic certification to process ginger derivatives.
Imports The major importers globally are the United States, Japan, and the United Kingdom, where an increase in terms of volume and value has been observed over recent years. However, these countries import ginger mainly from China and Thailand and not from India. Japan accounted for the major share (58.74%) of imported ginger during 1995, followed by the United States (9.93%), Hong Kong (7.62%), Singapore (5.16%), Saudi Arabia (4.37%), the United Kingdom (4.36%), Canada (2.39%), the Netherlands (1.93%), Germany (1.25%), and Malaysia (0.78%), and the rest by others, including India. Japan, a major importer, imports more than 50% of its requirement from China. Thailand exports mostly preferred fresh ginger in large quantities to Japan. Japan’s import from India constitutes mainly dry ginger. Of late, the Spices Board is exploring the Japanese market to increase India’s export to that country.
Indian Import of Ginger A sizeable quantity of ginger imported into India is of the green form. The major imports in fresh form are from Nepal, where dried ginger is imported from China and Nigeria. The Indian import scenario is given in Table 24.8.
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Table 24.8 Itemwise Import of Ginger into India During 1995–2000 Item
1995–1996
Q Dry 782.6 ginger Fresh 6682.2 ginger Ginger – powder
1996–1997
1997–1998
1998–1999
1999–2000
V
Q
V
Q
V
Q
V
Q
V
218.5
133.9
64.7
247.4
106.2
542.3
291.4
4695.0
1198.5
429.0
9277.7
580.7
1185.4
703.1
9727.2
614.8
7614.2
688.7
–
–
–
–
–
Negligible
0.03
13.0
6.4
Q = Quantity in metric tons, V = in lakhs (1 lakh Indian rupees = US$ 1995 Approx.)
Market Opportunities According to an ITC market development paper (1995), consumption of spices is likely to increase due to an augmented production of highly flavored food by the food industry. In addition, an increasing interest in health food, consequently, “natural” instead of “artificially” flavored food, will also increase the consumption of natural, unadulterated spices.
Dry Ginger A development noted in the ginger trade has been the increasing use of oils, oleoresins, and powdered and processed ginger in major importing countries, especially in the United States and EU countries. Ginger exports for the manufacture of powdered ginger must be fiber-free, whereas the products exported for the manufacture of ginger oil and oleoresins should have a high oil content. Export efforts should be based on increased productivity and improved postharvest technology.
Fresh Ginger There may be some prospects for a modest increase in international trade in fresh ginger, mainly to cater to the ethnic market, especially of the Asian communities settled in the United States and European countries.
Preserved Ginger Japan will continue to have the world’s largest market in preserved ginger. This is because preserved ginger finds a place in an array of Japanese food. There is also the prospect of a modest market for preserved ginger in the United States and western European countries, especially to cater the ethnic taste. The Chinese segment is, in particular, important in this context. However, the growth in this segment can only be modest, as of now, and also in the future.
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471
Table 24.9 Unit–Price Ratio for Various Exporting Countries From 1994 to 1998 Country
1994
1995
1996
1997
1998
1994–1998
China Thailand Indonesia Brazil Taiwan Costa Rica India Nigeria Vietnam Malaysia United States Others
0.90 0.87 0.54 1.61 3.18 1.19 1.23 0.74 0.50 0.35 1.99 1.77
0.83 1.06 0.51 1.64 3.83 1.33 2.07 0.97 0.67 0.43 1.96 1.53
1.17 0.91 0.43 1.11 2.00 0.89 1.06 0.85 0.57 0.32 0.86 0.96
1.03 0.82 0.62 1.26 2.43 1.01 1.20 1.16 0.89 0.37 1.04 1.12
0.94 0.73 0.48 1.36 3.21 1.10 1.80 1.36 0.56 0.38 1.45 1.65
0.96 0.86 0.53 1.35 2.76 1.10 1.40 1.06 0.66 0.36 1.29 1.33
Competitiveness of Indian Ginger Industry In order to understand better the position and competitiveness of individual exporters in world trade of ginger, market shares and unit value ratios were calculated and are presented in Table 24.9. In the absence of time-series data on prices for individual products from various countries, the unit price was worked out from the value of the export and quantity exported. While calculating unit price, individual items of export were not taken into account. Hence, there is bound to be slight variation depending on the share of value-added products in the export basket of individual countries. However, the estimated unit–value ratios help in comparing the prices of each exporting country with another and with the average of total exports. The ratio is computed by dividing the price received for a country’s export by the world average price. When the unit–price ratio is less than 1, then it is considered that the country possesses competitiveness in the export market for its product. Accordingly, as can be observed from the data in Table 24.9 that Indonesia, China, Thailand, Vietnam, and Malaysia with a unit–price ratio less than 1 are highly competitive, whereas India, with an average unit–price ratio of 1.40, is less competitive in its price structure in the world market. Any country’s competitive power in exporting a commodity depends crucially on its relative price and the quality of that commodity over the competing countries. India has a weak competitive position in the international market for ginger, which is mainly because of a very low productivity of 3357 kg/ha as compared to 55,636 kg/ha of the United States, and an average world productivity of 10,179 kg/ha (FAO, 2003). Moreover, the increased cost of production due to lower productivity of Indian ginger compared to that of other producing countries makes it imperative for India to increase its ginger productivity, which also can reduce the cost of production. The country has enough potential to increase its ginger productivity. To be
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The Agronomy and Economy of Turmeric and Ginger
successful in the changing environment, it is essential to be innovative and proactive. India, being the major producer of ginger in the world, stands seventh in ranking when its performance is compared with that of other countries. The gross margin is a good measure for comparing the economic and productive efficiency of similar-sized farms. More importantly, it represents the bare minimum that a farm must generate in order to stay in business. The cost–benefit ratio worked out for ginger production in the United States was 1.34. Productivity achieved on the ginger farms of Hawaii ranged from 50,000 lbs/acre to a low of 27,500 lbs/acre. The reported average returns for the farm with a productivity of 46,200 pounds depends not only on the yield but also price.
Risks and Uncertainty Risk is inherent in all of agriculture, but the ginger industry appears to be more exposed to risk than many other agricultural endeavors (Fleming and Sato, 1998). A review by the Hawaii Agricultural Statistics Services (HASS) reveals considerable volatility in ginger price and yield, with relatively little correlation between the two variables. In addition to abruptly fluctuating prices, ginger is relatively susceptible to serious disease problems, providing an ever-present possibility for a disease problem to reduce yields sharply (Nishina et al., 1992). A sustainable ginger economy is possible only when these risks are minimized. Along with price risk, cash-flow implications are the perceived crop risk for a crop such as ginger. This is related to age to first bearing and longevity of the crop. Production and marketing risks are greater the longer the crop takes to bear and the greater the life of the crop. The length of the harvest period also has its risks: the longer the harvest period, the greater the risk of failure. Vinning (1990), in the Australian Centre for International Agricultural Research (AICIAR) technical report for marketing perspectives on a “Potential Pacific Spice Industry,” has given crop failure ratings for different spice crops, based on the above points. It was found that ginger topped the list as a “high risk” commodity, followed by vanilla. The ginger industry is facing risk and uncertainty in different forms. Each country has to face considerable competition from other ginger-producing countries because of many new countries entering into the ginger industry in recent years. Over the years, India has lost its market to China and Indonesia, as is the case in the case of cardamom, where India lost the market to Guatemala. This is primarily because of the competitive price edge in the case of Chinese and Indonesian ginger as compared to India’s. From the point of view of Indian farmers, the prices have been generally good during the past decade, although there was a drastic reduction in 1996 and 1997 and 2001 and 2002. During 1999–2000, ginger farmers received an all-time high price, which was more than double the price in the preceding year. The price was always above the break-even point, with the average of US 10 cents/kg for fresh ginger in the northeastern states, where fresh ginger is marketed, thus leading to profitable ginger farming.
Production, Marketing, and Economics of Ginger
473
The price for dry ginger was well below the break-even point in the 1980s and in the early 1990s, as well. From 1982 to 1984 and 1993 to 1995, the price almost doubled. In addition to this abrupt fluctuation in price, the ginger crop is also highly susceptible to serious disease problems, leading to a reduction in rhizome yield, and an unmarketable production. At times, the farmer might lose up to 80% of the crop toward harvest time. Thus, the ginger crop industry is influenced by the risk factors associated with yield and seasonal price fluctuations, though these factors seem unrelated on a long-term basis. However, the ANOVA indicates that the price variability of ginger is greater than the yield variability. Some of the policy measures appropriate to the ginger industry are the following: 1. Healthy seed production through the “Seed Village Concept” by regular field monitoring for diseases and pests, and enforcing seed certification measures. 2. Impose quarantine measures to restrict free and uncontrolled movement from one place to another, especially where bacterial wilt is endemic. 3. An integral approach to control the most serious problem in ginger cultivation—the prevalence of rhizome rot. This could be further complicated by bacterial, fungal, and insect attack on the ginger plant. 4. High fiber content and high cost of production are the deterrents which make Indian ginger uncompetitive, both qualitywise and pricewise. Ginger breeding must focus especially on the former, while ginger agronomy should focus on the latter. 5. Develop cropping systems most suited to ginger as an intercrop, especially in coconut and arecanut gardens. In developing such cropping systems, adequate attention must be given to the cost–benefit ratio. 6. Value addition is a key component in making the ginger market attractive and profitable. The global scenario, where reexport from EU countries show that India has to learn how best to exploit this avenue. 7. Since the importing countries, especially Japan, the United States, and EU countries are highly quality conscious, there is an imminent need to focus more on postharvest measures, where the end produce is free of all extraneous materials, including pesticide residue. Good and attractive packing makes the ginger market more consumer friendly. 8. Indian farmers need to be urgently educated on various aspects of ginger production, right from sowing to harvest and proper postharvest technology. As of now, many are not properly oriented, neither is there a concerted effort to bring them up to international standards. 9. High-value organic farming is an emerging market. There is a great urgency to popularize the concept among as many ginger farmers as possible to reap the full benefit of global ginger marketing from this segment. 10. There should be no mistaking that value addition confines only to the manufacture and sale of ginger derivatives, such as oleoresins and volatile oils. One EU document reveals that in the export market, “Buyers are looking for clean, well flavored, artificially dried product with high hygiene levels, in contrast to the bulk of the materials which has been sundried on the ground” (Commonwealth Secretariat, 1996, p. 45).
For the successful implementation of the above-mentioned policy-related suggestions, there is an imminent need to develop a special database regarding all aspects of ginger-based crop production, which include marketing, employment potential, production techniques, cost of cultivation, and value addition. This in turn, will help in creating decision support systems to benefit the stakeholders, both producer and consumer.
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References Anonymous, 1996. Guidelines for Exporters of Spices to the European Market Commonwealth Secretariat, London UK. DASD, 2002. Arecanut and Spcices Database. Directorate of Arecanut and Spices Development (DASD), Calicut, Kerala State. Datta, S.K., Singh, G., Chakrabarti, M., 2003. Ginger and its products: management of marketing and exports with special reference to the eastern Himalayan region. National Consultative Meeting for Improvement in Productivity and Utilization of Ginger, 12–13 May 2003, Aizwal, Mizoram, India. FAO, 2003. FAOSTAT, FAO, Rome
Production, Marketing, and Economics of Ginger
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Spices Board, 1990. Production and Export of Ginger Status. Spices Board, Cochin, Kerala State. Spices Board, 1992. Report of the Forum for Increasing Export of Spices. Spices Board, Ministry of Commerce, Government of India, Cochin, Kerala State. Spices Board, 2008. Report on the Domestic Survey of Spices (Part I). Spices Board, Ministry of Commerce, Government of India, Cochin, Kerala State. Sreekumar, M.M. Arumugham, C., 2003. Technology of fresh ginger processing for ginger oil and oleoresin. National Consultative Meeting of Improvement in Productivity and Utilization of Ginger, 12–13 May 2003, Aizwal, Mizoram, India. Vinning, G., 1990. Marketing Perspectives on a Potential Pacific Spice Industry. Australian Centre for International Agricultural Research, Canberra, Australia, (ACIAR Technical Reports No 15. p. 60).
Ginger is an important commercial crop grown for its aromatic rhizomes, which are used both as a spice and as a medicine. India accounts for about 30% of world production, followed by China at 20%. The world production is approximately 0.75–0.8 million tons annually from an area of around 0.3 million hectares. Table 24.1 gives an account of this. During the same period, the export was around 20% of the total world production valued at US$ 105.73 million. Even though India is the largest producer of ginger in the world, the country occupied only the seventh position in export during 1999–2000, after China at the number one position, followed by Thailand, Brazil, Taiwan, Nigeria, and Indonesia. The major importing countries are the United Kingdom, the United States, Japan, and Saudi Arabia. In India, the most amount of ginger-producing states are Kerala, Meghalaya, Odisha, West Bengal, Andhra Pradesh, Karnataka, Sikkim, and Himachal Pradesh. Official statistics on area, production, and productivity, although conflicting and often confusing, are available through FAOSTAT (statistical data of FAO) and SPICESSTAT (Spices Statistical database of the Integrated National Agricultural Resources Information System, INARIS of the Indian Council of Agricultural Research, India, located at the Indian Institute of Spices Research, Calicut, Kerala State, India). However, trade-related data available are relatively complete and make a distinction between dried and fresh ginger. A multitude of processed ginger products entering the world market are not taken into account separately. Despite certain limitations in the availability, this chapter will make use of the time-series data on production, export, and import. The objective of this effort is to obtain a broad indication on the possible changes which have taken place in the economy of ginger production during the last three to four decades starting from 1970 to 1971, and examine further prospects, both national and global, for the crop. From 1975 to 1980, India was the major producer of ginger with a total share of 30–35% of the total production, followed by China at 15%. China increased its share of world production up to 24% in the recent past, but India was on the decline and only produced 28% during this period. Indonesia totaled about 15% of world production, and together these three countries contribute more than one-third of world’s production of ginger. The decline in ginger production in India in the 1970s has a parallel in cardamom production, coinciding with the same period, and while in the case of cardamom, Guatemala surpassed India, in the case of ginger, China started approaching India. Table 24.2 gives a global picture with regard to production by major ginger-producing countries. The supply of ginger on a country-wise basis is computed taking into consideration area, production, and exports. The analysis brings out inconsistencies in yield and expansion of area. In order to make a meaningful analysis, ginger-producing The Agronomy and Economy of Turmeric and Ginger. DOI: http://dx.doi.org/10.1016/B978-0-12-394801-4.00024-7 © 2013 Elsevier Inc. All rights reserved.
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The Agronomy and Economy of Turmeric and Ginger
Table 24.1 Ginger Production: A World Scenario Country
Area
Percentage of World Acreage
Total Production
Percentage of Total Production
Traditional Bangladesh China Dominica Dominican Republic Fiji Islands India Jamaica Korea Malaysia Nigeria Philippines Sri Lanka Thailand Newcomers Australia (1990) Bhutan (1980) Cameroon Costa Rica Ethiopia (1993) Ghana Indonesia (1981) Kenya (1989) Madagascar (1992) Mauritius (1985) Nepal (1985) Pakistan (1994) Reunion (1985) Saint Lucia (1985) Uganda (1990) United States (1985) Zambia World Total
14,5344 6,879 13,200 45 400 65 83,220 180 4,255 1,000 17,400 4,700 2,000 12,000 15,261 150 350 1,370 1,600 150 0.00 10,000 55 8 70 12,00 78 30 25 50 125 0.000 31,7055
45.84 2.17 4.16 0.01 0.13 0.02 26.25 0.06 1.34 0.32 5.49 1.48 0.63 3.78 4.81 0.05 0.11 0.43 0.50 0.05 60 3.15 0.02 0.00 0.02 0.38 0.02 0.01 0.01 0.02 0.04 100 100.00
650,330 38,000 160,000 100 1,500 2,500 281,160 620 7,950 2,500 90,000 28,000 8,000 30,000 12,4948 4,500 3,100 7,500 21,000 400 0.01 77,500 150 30 200 3,200 28 500 60 120 6,500 0.01 770,778
84.37 4.93 20.76 0.01 0.19 0.32 36.48 0.08 1.03 0.32 11.68 3.63 1.04 3.89 16.21 0.58 0.40 0.97 2.72 0.05 – 10.05 0.02 0.00 0.03 0.42 0.00 0.06 0.01 0.02 0.84 – 100.00
Figures in parentheses indicate the earliest year of initiating ginger production in the country mentioned. Source: FAO (2003).
countries are grouped into two major categories: (i) traditional producers; and (ii) newcomers. Data in Table 24.1 give a bird’s-eye view of the entire situation. The groupings suggest that up to 1980 there were about 15 countries engaged in the production of ginger. Since ginger cultivation and processing are labor intensive, most of the African countries have neglected this crop, and consequently, they are not very active now in the world market, though there is tremendous potential for the production of this crop on the African continent. But many other countries have entered the
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455
Table 24.2 Ginger Production in Major Ginger-Producing Countries: A World View (1975–2002) Period
1975 1980 1985 1990 1995 2000 2002
Percentage Share of the Total India
China
Indonesia
Others
30.67 33.47 35.37 31.35 30.11 28.58 27.83
11.68 20.75 12.89 11.05 20.00 23.70 23.98
– – 12.56 16.27 11.34 15.52 15.18
57.65 45.78 39.18 41.33 38.55 32.20 33.01
World Production (mt)
147,213 246,316 390,259 491,153 728,376 962,060 988,182
Source: FAO (2003).
ginger market, as the data in Table 24.1 show. The number has almost doubled to date. The average share of newcomers in total global ginger production during the recent past (1998–2001) is 16.21%, which is on the increase. Among the newcomers, Indonesia, which although it entered the field of ginger production quite late, has made remarkable progress, considering the fact that it entered the field of ginger production only in 1981 (Table 24.1). It accounts for more than 10% of total world production now. It is quite possible that many more countries like Indonesia have entered this lucrative market, but reliable statistical data is difficult to find.
Area Expansion An analysis of the world scenario on ginger production in terms of the acreage covered reveals the following: 1. China recorded the highest growth in acreage during 1991–2002 (10.969%) among all the ginger-growing countries. Indonesia and India, the other major producers, showed moderate growth at 5.6% and 3.006%, respectively, during the same period. 2. Other countries showing considerable growth in ginger acreage during the above-mentioned period are Sri Lanka, (0.26%), the United States (5.92%), Costa Rica (7.57%), Mauritius (1.31%), Bangladesh (1.34%), and Nigeria (5.8%). On the other hand, Uganda showed negative growth (−20.35%), as did Fiji (−8.29%), Pakistan (−13%), and Jamaica (−10.41%). These countries are newcomers. 3. The Philippines, Nepal, and Thailand showed relatively lower decline in acreage at −3.35%, −3.35%, and −4.69%, respectively. 4. An interesting phenomenon observed in terms of fluctuations in growth in acreage is that a high growth rate in a specific region (country) during a particular period is generally followed or preceded by a period of low or negative growth. 5. There is no striking difference between performances of traditional growers and newcomers. In terms of growth in acreage, some newcomers have fared well, whereas some others have failed miserably. The same argument holds true in respect of traditional ginger-producing countries, as well.
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The world scenario inasmuch as ginger production is concerned highlights the recent trends: 1. China recorded the highest growth (11.39%) during 1991–1997, followed by Mauritius (11.15%), and Kenya (9.95%). Next in order are Nigeria (8.56%), Malaysia and Sri Lanka (both 6.78%), Madagascar (5.96%), and South Korea (4.36%). 2. A number of countries have recorded a high rate of negative growth, Uganda with the highest negative growth (−21.67%), followed by Fiji (−17.24%). 3. Between the above two extremes lie the other countries, some showing moderate positive growth, while others moderate negative growth.
Regarding growth, the cyclical nature of the growth pattern was observed over the decades for both area and production. With the exception of Fiji, the nature of fluctuations in acreage and production was almost identical (in terms of both peak and trough) for other countries. Again, on average, the growth pattern in production is also not group specific.
Yield In terms of productivity performance, the world scenario shows the following: 1. Except in Fiji, South Korea, the Philippines, and Nigeria, the traditional growers of ginger, the cyclical growth fluctuations are not that sharp in other countries. 2. The fluctuations are highly erratic in Fiji, recording a high negative growth during 1971– 1980 and a very high positive growth in the following decade, only to come down to around 3% during 1991–1997.
In order to analyze the salient features of major ginger-producing and gingerconsuming countries individually, an effort is made to present country-wise details separately.
India Ginger is grown in almost all the states in India. However, the major ginger-producing states are Kerala, Odisha, Meghalaya, West Bengal, Karnataka, Sikkim, Andhra Pradesh, and Himachal Pradesh. Kerala accounts for the major share of production (19%) and acreage (19%). This figure has remained more or less unchanged during the last more than three decades. Odisha comes after Kerala, followed by Meghalaya. These three traditional ginger-growing states in India account for approximately 40% of India’s production. In South India, although ginger cultivation was confined only to Karnataka State in the earlier years, during the past decade it has been making inroads into the paddy fields of Kerala and Tamil Nadu, including Karnataka. In Karnataka State, ginger is cultivated on a commercial scale in the Coorg and Chickmagalur districts, with
Production, Marketing, and Economics of Ginger
457
a reported area of approximately 5000 ha (Korikanthimath and Govardhan, 2001a). Enterprising farmers from the adjoining Waynad district of Kerala State lease paddy fields for ginger cultivation. Fresh ginger harvested during the months of January– March has buyers coming from as far as Nagpur district and Mumbai in Maharashtra State and also from Bengaluru in Karnataka State. A sizeable quantity of fresh ginger goes to the traditional ginger-growing districts of Ernakulam and Kottyam in Kerala State for processing into dry ginger. In Kerala State, Waynad and Idukki districts contribute the most for the export of quality ginger. Incidentally, these two districts have the most intensive ginger cultivation in India. Farmers from Karnataka have a unique practice of putting back a certain portion of harvested ginger in the ground and preserving it as “old ginger” for the succeeding year. This is because of the low ginger price during harvest season. During the following year, this ginger is used for sowing, and more rhizomes develop, and the farmers hope to get more money for the fresh produce and the old produce. The major cultivars used are Himachal, Maran, and Rio de Janeiro (Spices Board, 1988).
Production Economics Examination of the time-series data indicates that the coefficient of variation for the farm price of ginger was higher than the production cost incurred over a period, indicating the huge fluctuation in the market price of ginger in India. This had a greater impact on the production economics of the farming community. The problem can be better understood by the following facts. Farmers buy seed rhizomes for prices as high as Rs 50/kg (approximately US$ 1) at times, but the harvest price could fetch them only one-fifth of this price paid. In order to preempt price-related risks, the farmer cultivates ginger as an intercrop in the main crop, such as coffee. In the major ginger-growing state, Kerala, approximately one-fourth of the cultivated area is in the uplands as pure crop, whereas in the major area (45%) is the garden lands category and the rest is under a mixed cropping system. A study on economics showed that banana + ginger + vegetable (cowpea) intercropping system fetched close to an equivalent of US$ 2000/ha. The benefit–cost ratio was also highest in the banana + ginger mixture (2.28), whereas the lowest benefit–cost ratio (1.56) was recorded in the banana + turmeric system (Regeena and Kandaswamy, 1987). It takes about approximately 10 cents to produce a kilogram of ginger in Kerala. An investigation conducted in Maharashtra to work out the economics of ginger production revealed that the average production cost per quintal (100 kg) is approximately US$ 40 and the estimated cost–benefit ratio is 1.38. The cost of the seed rhizome accounts for approximately 40% of the total cost of production (Gaikwad et al., 1998). Korikanthimath and Govardhan (2001b) conducted an investigation to compare the economics of ginger cultivation in the uplands and paddy fields of Karnataka, which indicated that the cost–benefit ratio is more favorable in paddy fields (1.7) as compared to upland cultivation (1.11). This higher profitability is mainly due to higher productivity (23.5 t/ha) achieved in the paddy fields, when compared to the yield level of 13.5 t/ha in the uplands.
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The Agronomy and Economy of Turmeric and Ginger
Trends in Area, Production, and Productivity The time-series data on area, production, and productivity of ginger along with the growth index worked out for the last three decades indicates the following.
Area The area under ginger cultivation has shown remarkable increase during the last three decades, with occasional fluctuations attributed to the ups and downs in price structure. Low profit in a specific year due to unfavorable price structure leads to reduction in the area cultivated, which reflects on the production levels in the subsequent years.
Production India’s production of ginger has been increasing steadily from 29.59 thousand tons/ha during 1970–1971 to 263.17 thousand tons/ha by 1999–2000. This is almost a 100-fold increase. Precisely, this works out to 789% increase, which resulted from a combined improvement in both area cultivated and the concomitant increase in productivity. Both Kerala and Meghalaya put together accounted for more than 65% of the total production in India. If one makes a region-wise grouping, the southern region comprising Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh accounts for 52.4% of production with a corresponding total area of 42.4% in the period from 1990–1991 to 2000–2001. District-wise, ginger production area shows that ginger cultivation is mainly confined to Kerala and Meghalaya. The state-wise area, production, and productivity of ginger for three periods, 1982–1983, 1992–1993, and 1998–1999 show that as against the national average yield of around 3371 kg/ha achieved during 1992–1993, states such as Meghalaya, Andhra Pradesh, Sikkim, and Tamil Nadu have consistently recorded a higher yield. Tamil Nadu achieved the highest yield of 19,450 kg/ha during the period and has attained a record productivity of 31,683 kg/ha during the 1998–1999 crop season. The insignificant change in area in Tamil Nadu is taken care of by a significant growth in yield in the state, thereby helping it to register a healthy growth in production. Nagaland, Mizoram, Arunachal Pradesh, and Meghalaya are the other states in order to achieve higher productivity (more than 5500 kg/ha) during the same period. Andhra Pradesh registered 7164 kg/ha, Meghalaya 5137 kg/ha, Mizoram 5000 kg/ha, while Odisha registered the lowest figures (1990 kg/ha) (DASD, 2002).
Productivity Further analysis of the time-series data between 1970–1971 and 1997–1998 indicated that the yield level of ginger in India increased over the years from 1371 kg/ha during 1970–1971 to 3391 kg/ha during 1997–1998. The yield level which was approximately 1371 kg/ha during 1970–1971, did not show much improvement until the end of 1980, except for occasional fluctuations toward the higher side (up to 1991 kg/ha) during 1977–1978. It seems the yield increase during this period did not contribute
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Table 24.3 Change in Ginger Production, Area, and the Relative Contribution of Changes in Area and Yield on the Changes in Production During Different Periods in India Details
Change in: Production Area Productivity
1980–1981/ 1984–1985 to 1985– 1986/1989–1990
1985–1986/ 1989–1990 to 1990– 1991/1994–1995
1990–1991/ 1994–1995 to 1995– 1996/1999–2000
40.22 18.28 19.54
26.84 10.10 15.01
30.47 21.47 8.16
40.48 58.83
73.11 29.49
Change in production due to change in: Area 49.66 Productivity 52.81
Analysis based on the method followed by Librero et al. (1988).
much to the overall increase in production. The increase in production during that period was largely due to an increase in cropped area. However, the productivity level improved from 1980 to 1981 onward and reached an average of 3188 kg/ha from 1990–1991 to 1998–1999. Productivity registered during 2000–2001 was more than twofold the productivity of 1970–1971. The estimated growth index for the year 1998–1999 in production was 254% over the base year 1970–1971. To ascertain the impact of area expansion and productivity on the overall production during different periods, period-wise data were analyzed using a simple technique followed by Librero et al. (1988). Results show that there is a positive sign in all three parameters, indicating the steady improvement in production due to both area expansion and productivity increase. Results are shown in Table 24.3. However, the detailed component analysis revealed that the change in productivity had a more positive role in the first two periods, whereas in the last, area expansion played a major role in the expansion of production.
Growth Estimates In order to obtain the long-term trends in area, production, and productivity in the major ginger-growing states in India, semilogarithmic growth equations were estimated, which indicated that the overall trend in the area under ginger cultivation registered an average annual growth rate of 4.3% for the period 1990–1999. Growth in production was at the rate of 6.11% during the same period, indicating a slight improvement in productivity, which was approximately 1.82% for the period.
Production Constraints A status paper prepared by the Spices Board (1990) on the ginger crop highlights the fact that mostly small and marginal growers cultivate ginger in India. They face enormous problems and constraints which hamper the ginger productivity. Major
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The Agronomy and Economy of Turmeric and Ginger
production constraints in ginger cultivation listed by various investigators, including the Spices Board of India (Kithu, 2003; Selvan and Thomas, 2003) are: 1. Low productivity (3391 kg/ha) compared to an achieved average productivity of more than 1 lakh kg/ha elsewhere in the world. 2. Prevalence of innumerable traditional cultivars, which are mostly poor yielders. Absence of an adequate supply of planting materials of improved cultivars. 3. Being a predominantly rainfed crop, failure of rains, and increased labor costs are some of the factors responsible for the higher cost of cultivation of ginger in India. 4. Nonadoption of integrated plant protection measures to control pests and diseases, such as rhizome rot, which cause heavy production and postharvest losses in the crop in many parts of the country. 5. Lack of suitable postharvest processing facilities and poor marketing facilities, especially in the northeastern states of India, which result in poor returns to the farmers. 6. Lack of remunerative prices for the produce in subsequent years, which leads to diminished enthusiasm of the farmers to cultivate ginger, which eventually leads to the neglect of the crop in the country, adversely affecting overall production and growth rate of the crop.
Taking the above points into consideration, there is an imminent need to develop cropping systems with ginger as a component. Although the crop is being cultivated as an intercrop in coconut and arecanut plantations, the researchers have yet to develop ideal cropping systems focusing primarily on the cost–benefit ratio for the famer, and other associated environmental considerations, such as soil degradation.
China In China, ginger is grown extensively in all the central and southern provinces. It is cultivated as either an annual or perennial crop. China emerged as the second largest producer during the year 2002 (23.98% of the total world production), next to India. During 1990, China’s production was 54,284 t, accounting for 11.05% of total world production. Within the next decade, there was a more than fourfold increase in production and the production level reached one-fourth of the total world production. This achievement is primarily due to high average productivity of 115,104 kg/ha, an unheard of production level anywhere in the world, and the highest level was 120,641 kg/ha in 1996. Since Chinese ginger contains less fiber, the rhizomes being bigger in size, and the end product competitive in price, Chinese ginger commands the first place in the world production. In 1994, China exported 52.05% of total production and this continued until 2000, which accounted for 61.59% of total world exports. Of the annual export of 91,000 t, Chinese export accounts for more than 61%. Many importing countries prefer Chinese ginger for its price competitiveness and quality of produce. Ginger from China is also exported in crystallized form in earthenware jugs and as syrup in wooden kegs. Harvesting of ginger in China commences in April and extends up to June. Harvested ginger is transported to processing plants in Chiang Rai for export, mostly to Japan. Young ginger is preserved in vinegar bottles and consumed as pickles.
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Table 24.4 Australian Ginger Yield Harvest
Time of Harvest
Yield (t/ha)
Early Early-Late Late
Late February–Early March April–August Mid June–Early October
12–50 20–50 38–75
Australia Commercial cultivation of ginger in Australia was first started in Buderim in Southeast Queensland as early as the 1940s mainly for the domestic ginger market. Ginger is now grown in the Caboolture, Nambour, and Gympie areas for processing at Yandina. Twenty-four growers currently represent the Australian ginger industry with approximately 150 ha under cultivation. The bulk of production is processed, with smaller volumes sold in the domestic and export markets. Buderim Ginger Ltd. is the only ginger-processing facility in Australia. This factory, through production quotas and a differential pricing system, controls the quality and quantity of ginger production for processing. Most growers derive the majority of their income from processed ginger. A few also supply the domestic fresh ginger market, and only two to three growers export fresh product. In 1987, Royal Pacific Foods began exporting Buderim ginger to the United States. Now the Australian products under the brand name “The Ginger People” are freely available on the market shelves of many wellknown food chain stores the world over. The Australian ginger farmer has achieved a reasonably higher productivity against the world average as shown in Table 24.4.
Thailand Thailand produces about 32,000 t of ginger annually. The crop is cultivated extensively in the northern part of the country, especially in the mountains. Ninety percent of the production comes from the hills. Thailand has had a slow increase in ginger production. Without much improvement in the recorded productivity of 25,000 kg/ha, improvement in the overall production was achieved through area expansion. The estimated normal growth rate for the period 1990–2002 was 2.7%, 2.81%, and 0.10%, respectively, for area, production, and productivity. Ginger from Thailand is noticeably distinguishable compared to others because of its plumpness, roundness, and short internodes. The popular dried “Golden” variety from Thailand is packed and exported.
Marketing Products of Commerce Three primary products of ginger rhizome traded nationally and globally are (i) fresh ginger; (ii) preserved ginger in syrup or brine; and (iii) dried ginger.
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The Agronomy and Economy of Turmeric and Ginger
Preserved ginger is made from the immature rhizome, whereas the pungent and aromatic dried spice is prepared from harvesting and drying the mature rhizome. Fresh ginger, consumed as a vegetable, is harvested both when immature and mature. The preserved and dried products are the major forms in which ginger is internationally traded. Fresh ginger is of less importance in international trade, but this is the major form in which ginger is consumed in the producing countries. Dried ginger is used directly as a spice and also for the preparation of extractives, ginger oleoresin, and ginger oil (ITC, 1995). Commercial ginger in India is graded according to the region where it is produced, number of fingers contained in the rhizome, its size, color, and fiber content. Among the Indian States, it is only in the State of Madhya Pradesh, where grading of ginger is done. The first grade, popularly known as “Gola” in the local market, comprises very bold and round bits of dry ginger, which have maximum dry matter and low fiber content. The second grade, known as “Gatti,” includes bits of bold, round to oblong pieces, which are smaller than the “Gola” variety. The third and fourth grades are smaller bits with low dry matter and high fiber content (Jaiswal, 1980). For export purposes, Calicut and Cochin ginger are graded into special, good, and nonspecial grades, depending on the size of the rhizomes and the percentage of the presence of extraneous material. Dried ginger has been traditionally traded internationally in the whole or split forms and is ground in the consuming centers. Export of the ground spice from the dried ginger-producing countries is on an extremely small scale. The major use of ground dried ginger on a worldwide basis is for domestic culinary purposes, whereas in the industrialized Western countries it also finds extensive use in the flavoring of processed foods. Ground dried ginger is employed in a wide range of food stuffs, especially in bakery products and desserts (Anonymous, 1996). Ginger oleoresin, an important value-added product, is obtained by solvent extraction of dried ginger and is prepared both in certain industrialized Western countries as well as in some of the spice-producing countries, most notably India and Australia. This product possesses the full organoleptic properties of the spice— aroma, flavor, and pungency—and finds similar applications as in the case of ground spice in the flavoring of processed foods. The oleoresin is also used in certain beverages and to a limited extent in pharmaceutical preparations. The new process developed by the Regional Research Laboratory in Thiruvananthapuram, Kerala State, India, for extracting oil and oleoresin from fresh ginger, will lead to a higher recovery of the oil superior organoleptic qualities, and will drastically reduce spoilage of fresh ginger during harvesting season. This technology, which is highly suitable for the northeastern states of India, can utilize the cheap raw material available during the harvesting season to convert it into high-priced value-added products. The operating cost of the fresh ginger-processing facility is much lower than that of conventional plants. Further, drying, peeling, and so forth are dispensed with, and because the processing is done during the ginger harvesting season, the raw material inventory can be reduced drastically. It is expected that adoption of this new technology can boost the country’s prospects in adding value to the export of Indian ginger. Ginger oil is distilled from the dried spice mainly in the major spice-importing countries of western Europe and North America, as well as in some of the spice-producing
Production, Marketing, and Economics of Ginger
463
countries such as India. This product possesses the aroma and flavor of the spice but lacks the pungency. It finds its main application in the flavoring of beverages and also is used in confectionery and perfumery. Preserved ginger is prepared mainly in China, Hong Kong, Australia, and India, but smaller quantities of fresh ginger are processed in some importing countries as well. It is used both for domestic culinary purposes and in the manufacture of processed foods, such as jams, marmalades, cakes, and confectionery (Sreekumar and Arumugham, 2003).
Market Structure Regarding the market structure, there are a number of firms and individuals actively participating in the ginger trade, especially in the case of dried ginger. A large number of brokers, dealers, and various other intermediaries between the dealer and the consumer or even within dealers, exist both in exporting and in importing countries. Singapore, London, New York, Hamburg, and Rotterdam are major trading centers. In the case of preserved ginger, Hong Kong is the major trading center. Fresh ginger is marketed through the fruits and vegetables trade network. The market framework indicated that in terms of the ratio between farm harvest price and retail price, it was observed that the ratio was higher in 1989 as compared to 1995. Moreover, fluctuations in the ratio were also less in 1989. The ratio between the farm harvest prices and wholesale prices has also gone down in recent years, indicating that the producer is able to obtain a better price for the produce, and there is less exploitation by middlemen in the ginger business.
Factors Controlling Demand/Export A major factor that contributes to the export/demand potential of a commodity is quality. In ginger, quality parameters are fiber, volatile oil, and nonvolatile ether extract contents. Ginger grown in various parts of the country varies considerably in its intrinsic properties and its suitability for processing. This is perhaps more important with regard to preparing dried ginger than preserved ginger. The rhizome size is relevant in particular with regard to processing of dried ginger, and medium-sized rhizomes are generally the most suitable. Some areas grow ginger types yielding very large rhizomes, which are marketed as fresh ginger, but are unsuitable to convert to the dried spice, owing to their high moisture content. This causes difficulties in drying; frequently a heavy wrinkled product is obtained, and the volatile oil content is often low and below standard requirements. From the above point of view, ginger produced in certain pockets of Kerala is in more demand and has more export potential in the global market.
Indian Dried Ginger Two types of Indian ginger entering the international market are (i) Cochin and (ii) Calicut, named after two production centers and major ports of the Malabar Coast in Kerala State, India. The bulk of Indian exports is rough-shaped, whole rhizomes.
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In addition to this, some bleached or limed ginger is also produced, but this is mainly exported to the Middle East, as it is not favored in European and North American markets. Cochin and Calicut ginger have volatile oil contents in the range of 1.9–2.2%. They are characterized by a lemon-like aroma and flavor, which is more pronounced with the Calicut spice. They are starchier but are almost as pungent as Jamaican ginger. Their nonvolatile ether extract content is about 4.3%. They are widely used for blending purposes, and ginger beer manufacturers prefer these types (Spices Board, 1992).
Economics of Dry Ginger Production In India, production of the dried ginger of commerce is confined exclusively to Kerala State and the product is of two types—Cochin and Calicut. Cochin type, preferred over the Calicut type, is grown in central Kerala, mainly concentrated in the Ernakulam and Idukki districts, while the Calicut type is confined to the Malabar region, including the Waynad district in northern Kerala State. There is no other recognized commercial variety of dried ginger produced in other parts of India other than the Cochin and Calicut types. Kerala ginger is considered to be superior because of its low fiber content, boldness, and characteristic aroma and pungency. Ginger produced in other parts of India have more fiber, which are largely used for domestic consumption in the form of green ginger. Kerala State accounts for over 60% of the total dried ginger production and about 90% of India’s ginger export trade. In contrast to Jamaican ginger, which is clean peeled, Indian dried ginger is usually rough peeled or scraped. The rhizomes are peeled or scraped only on the flat sides of the hands; much of the skin between the “fingers” remains intact. The dry ginger so produced is known as the rough or unbleached ginger of commerce, and the bulk of the dried ginger produced in central Kerala consists of only this quality. Sometimes Indian ginger is exported unpeeled. For the foreign market, both Cochin and Calicut gingers are graded according to the number of “fingers” in the rhizomes. They are classified as follows: “B” for three fingers, “C” for two fingers, and “D” for pieces. In addition to these well-known types of Indian ginger, another type, Kolkata ginger, is occasionally seen in the market as well (Pruthi, 1989).
World Scenario As ginger is mainly used as a spice and condiment, its per capita consumption is not high enough to sustain its world-level production with the growing number of new ginger-producing countries taking recourse to the international trade in ginger. However, the market information indicates that there is a “hot trend” in the US market, which means an escalating demand for many other spices like black pepper, chilies, and ginger. This is a clear reflection of the changing food habits of the Americans, which is veering toward spicy food, as compared to the earlier bland types. This could also emanate from the new ethnic mix in the population. Chinese food and Indian curry, in which ginger is a principal ingredient, are increasingly
Production, Marketing, and Economics of Ginger
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being favored by the Americans. There is also a growing demand for ginger products worldwide. A recent development noted in ginger trade is the increasing use of ginger oils, oleoresins, and powdered and processed ginger in major ginger-importing countries, especially the United States and Europe.
Main Suppliers Major ginger exporters are India and China. Others which also export are Indonesia, Brazil, Sierra Leone, Australia, Fiji, Nigeria, and Jamaica. Indonesia, Taiwan, China, and Thailand are major exporters of fresh ginger. Important suppliers of preserved ginger are Hong Kong, which reexports refined fresh ginger, and Australia (ITC, 1995). In the world trade, there are two categories: (i) producer exporters (countries engaged in ginger cultivation which usually export after meeting the domestic consumption); occasionally these countries may also import to meet domestic needs; and (ii) countries which reexport.
World Trade Distribution Channels Specialized importers still play an important role in the global ginger trade. A list of the importers can be obtained from the International Trade Center (ITC).
Dry Ginger The traditional distribution system for dry ginger has declined as a result of the increase in purchase by dealers and processors directly from the source of production. There has also been an increase in trade in some countries among certain ethnic communities. Asians, in particular, have developed their own system of distribution based on direct trading with the producing countries and a network of small retail outlets.
Fresh and Preserved Ginger The marketing structure for fresh and preserved ginger is similar to that of vegetables in India. The recent rise of supermarkets in India has eroded the position and clout of wholesale dealers as some importers sell directly to supermarkets. In some importing countries, however, ginger in its fresh form is seen almost exclusively in shops catering to ethnic communities.
Export During 1994, China contributed 52.05% of total ginger export worldwide, followed by Thailand at 16.77%, Indonesia 9.73%, Brazil 6.24%, Taiwan 3%,
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The Agronomy and Economy of Turmeric and Ginger
Costa Rica 2.23%, India 1.98%, Nigeria 1.61%, Vietnam 1.37%, Malaysia 1.36%, and the United States 0.93%. Clearly, despite India’s preeminent production level in the world, it only contributed a small percentage of world export in 1995. China and Thailand maintained top export positions until 2000, in fact, showing a surge by China at 61.59%, followed by Thailand at 23%. The ginger export of Jamaica and Sierra Leone is considered to be of high quality on account of their superior flavor and clean appearance. However, the price of Jamaican ginger is quite high, which has led importers to search for cheaper alternatives. Today, the ginger from Australia is regarded as being of high quality due to its standardized and clean appearance and steady price. Grinders have favored Chinese ginger, but the use of bleaching agents and sulfur dioxide has adversely influenced Chinese exports to Europe and North America, as they are highly conscious of additives in food stuff. In order to examine the trend in returns from trade earned by the exporting countries, Datta et al. (2003) have used a simple index (VADD) defined as follows: VADD
Unit Value of Exports
Unit Value of Imports
where Unit Value of Exports = Total Value of Exports/Total Quantity Exported Unit Value of Imports = Total Value of Imports/Total Quantity Imported
Datta et al. (2003) have ranked all the countries in terms of VADD in decreasing order and reported that: 1. Out of the top 15 exporting countries, only 3 belong to the producer–exporter group. The rest are all from the reexporter group. 2. Only two countries are the traditional producers. 3. Of the major producers, India ranked 40th with a VADD of 0.38, followed by China at 44th place with a VADD of 0.21. In the case of Indonesia, the VADD estimate turned out to be negative at −0.13, meaning that Indonesia imported ginger at a higher unit value than it exported. 4. Thus, reexporters have, in general, succeeded in achieving a greater value addition to their export of ginger into the world market.
A further analysis of the import–export reexport trade showed that the unit price (US$ 2.18/kg) earned by the European Union (EU) countries (reexporters) from export is much higher than the average unit price (US$ 1.53/kg) earned by other producer exporters to EU countries. The Netherlands, Germany, and the United Kingdom are the major reexporters of ginger in Europe. Obviously, value addition to the imported material turned out to be the biggest money spinner to the EU countries. This is also a good and clear lesson to be learned from the world ginger trade, and that is unless the producer countries have a clear road map to the valueaddition process, merely producing ginger in large quantities is of no avail for reaping great pecuniary benefits from the ginger trade. This is a fundamental lesson all the developing countries have to learn in world trade. Extending this logic further, many examples can be cited in world agricultural trade, where the reexporter and not the producing countries benefit from world commodities trade. For instance, the
Production, Marketing, and Economics of Ginger
467
best cocoa is grown in Africa, either in Ghana or in the Republic of Cameroon. But the pecuniary benefits in large measure go to Paris, not to the toiling African farmer sweating it out under the scorching sun. It is here that technology plays a crucial role. Many examples can be cited to prove this point. Datta et al. (2003) have analyzed the export performance of Indian ginger economy between 1961 and 1996, which shows the following: 1. The physical volume of exports has increased approximately 2.96% annually, whereas the annual growth in value terms works out to be approximately 10%. The annual growth in the unit price realization over this period works out to be approximately 6.9%. 2. At a decadal disaggregated level, however, the performance of ginger export from India does not appear encouraging. There is a steady decline in unit value realization from ginger exports. During the 1960s, the unit value realization grew at an annual rate of more than 19%, despite the fact that there was a negative growth in the physical volume of exports. The growth in the physical volume of exports picked up considerably during the 1970s, although at the cost of a decline in the growth in unit value realization. The 1980s witnessed a fall in the growth rate of both of these attributes. During the first half of the 1990s, however, a spurt in the growth of physical exports is observed, accompanied by an almost stagnant unit value realization, despite considerable devaluation of the Indian rupee (Indian currency, which is now trading (at the time of writing this book, 2012) at Rs 55 per US$, a depreciation of almost 20% during the past few months).
Export Instability In order to estimate instability in ginger exports in terms of quantity, value, and price, an instability analysis was done using the time-series data, and the results are presented in Table 24.5. It can be observed from Table 24.5 that there was instability in the case of volume of ginger exported, value, and unit value of ginger export. The instability was relatively higher in the case of the volume of ginger exported (72.91%) compared to the value of the export (57.41%) and the unit value of the export (29.15%). This instability index was a close approximation of the average year-to-year percentage variation in the three parameters studied, which was adjusted for the trends.
Composition of Indian Exports As far as itemwise export of ginger from India is concerned, there has been a marked improvement in recent years. More than half of the total export value is earned by
Table 24.5 Instability Indices (Coppock’s Instability Index) of Ginger Exports (1970–2000) Particulars
1970–1971 to 1979–1980
1980–1981 to 1989–1990
1990–1991 to 1999–2000
1970–1971 to 1999–2000
Volume of export Value of export Unit value of export
47.95 51.60 49.44
60.37 62.35 68.81
84.71 63.50 34.62
72.91 57.41 29.15
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Table 24.6 Contents of Indian Export Basket (1990–1991 to 1999–2000 Average) Details
Dry ginger Fresh ginger Ginger powder Ginger oil Ginger oleoresin Total
Percentage Share of the Total Quantity (Mt)
Value (Approx. US$)
Unit Price (Approx. US$) (Per kg)
4,587.80 10,138.07 418.32 7.63 59.63 15, 211.45
405,000 200,000 20,000 18,000 12,000 8,000
90 Cents 10 Cents 90 Cents 40.00 US$ 22.00 US$ 60 Cents
Source: Spices Board (2008).
dry ginger, which accounts for 30.16% in terms of quantity (Table 24.6). Fresh ginger, though, accounts for 66.65% of the total quantity exported; in terms of value, the percentage share is 24.67. Ginger oil and oleoresin are the other products exported that have fetched a high value. As in the case of reexporting countries, especially EU countries, India has the potential to strengthen the processing industry to add more value-added products onto its export basket. India exports a sizeable quantity of fresh ginger through land custom stations in the northeastern states to Bangladesh. Although this export channel provides an opportunity to market the exportable surplus across the border at a reasonable price, whenever the price goes up, Bangladesh turns to a cheap supply from China and Indonesia. The same is the case with the other neighboring country, Pakistan (John, 2003).
Direction of Indian Exports Until the end of 1980s, more than 30% of Indian exports was to Arabian countries, in general, which has shown a declining trend ever since then, and India is finding a new market in Pakistan and Bangladesh. However, these countries turn to other sources, wherever the prices are competitive. During 1991, India exported more than 49% to Pakistan. However, during 1999–2000, Pakistan’s share of Indian import declined to 33%. A similar situation was witnessed in Bangladesh as well. Other main markets for Indian ginger are Saudi Arabia, the United Arab Emirates (UAE), Morocco, the United States, Republic of Yemen, the United Kingdom, and the Netherlands. To analyze the concentration of ginger exports to various countries, both in terms of quantity and in value of export markets, the Hirschman index was estimated, which is presented in Table 24.7. Generally, the index number above 40% is considered to be a high concentration. Here, the estimated index for quantity is more than 40 during all the three periods indicating higher concentration. In the case of value as well, the index was more than 40% in the first period, and it was nearer to 40% in the remaining two periods, as well. This indicates that the country has a set of markets, which prefer Indian ginger.
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Table 24.7 Hirschman Index for Export of Ginger Period
Particulars
Quantity
Value
1981–1982 1991–1992 1999–2000
Volume of ginger export Value of ginger export Unit value of ginger export
44.35 48.52 48.42
45.47 38.63 36.87
Export Promotion Program The Spices Board, Government of India, implements a number of programs to promote ginger export. These are: 1. Assistance in establishing improved cleaning and processing facilities. 2. Support for setting up high technology-assisted processing facilities. 3. Assistance in establishing and strengthening in-house quality laboratories to test various quality parameters. 4. Assistance for new product/end use development. 5. Assistance for improved packaging. 6. Assistance for undertaking promotional sale tours and participation in international spice fairs. 7. Support for promoting branded consumer-packed ginger in identified markets overseas. 8. Support for organic certification to process ginger derivatives.
Imports The major importers globally are the United States, Japan, and the United Kingdom, where an increase in terms of volume and value has been observed over recent years. However, these countries import ginger mainly from China and Thailand and not from India. Japan accounted for the major share (58.74%) of imported ginger during 1995, followed by the United States (9.93%), Hong Kong (7.62%), Singapore (5.16%), Saudi Arabia (4.37%), the United Kingdom (4.36%), Canada (2.39%), the Netherlands (1.93%), Germany (1.25%), and Malaysia (0.78%), and the rest by others, including India. Japan, a major importer, imports more than 50% of its requirement from China. Thailand exports mostly preferred fresh ginger in large quantities to Japan. Japan’s import from India constitutes mainly dry ginger. Of late, the Spices Board is exploring the Japanese market to increase India’s export to that country.
Indian Import of Ginger A sizeable quantity of ginger imported into India is of the green form. The major imports in fresh form are from Nepal, where dried ginger is imported from China and Nigeria. The Indian import scenario is given in Table 24.8.
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Table 24.8 Itemwise Import of Ginger into India During 1995–2000 Item
1995–1996
Q Dry 782.6 ginger Fresh 6682.2 ginger Ginger – powder
1996–1997
1997–1998
1998–1999
1999–2000
V
Q
V
Q
V
Q
V
Q
V
218.5
133.9
64.7
247.4
106.2
542.3
291.4
4695.0
1198.5
429.0
9277.7
580.7
1185.4
703.1
9727.2
614.8
7614.2
688.7
–
–
–
–
–
Negligible
0.03
13.0
6.4
Q = Quantity in metric tons, V = in lakhs (1 lakh Indian rupees = US$ 1995 Approx.)
Market Opportunities According to an ITC market development paper (1995), consumption of spices is likely to increase due to an augmented production of highly flavored food by the food industry. In addition, an increasing interest in health food, consequently, “natural” instead of “artificially” flavored food, will also increase the consumption of natural, unadulterated spices.
Dry Ginger A development noted in the ginger trade has been the increasing use of oils, oleoresins, and powdered and processed ginger in major importing countries, especially in the United States and EU countries. Ginger exports for the manufacture of powdered ginger must be fiber-free, whereas the products exported for the manufacture of ginger oil and oleoresins should have a high oil content. Export efforts should be based on increased productivity and improved postharvest technology.
Fresh Ginger There may be some prospects for a modest increase in international trade in fresh ginger, mainly to cater to the ethnic market, especially of the Asian communities settled in the United States and European countries.
Preserved Ginger Japan will continue to have the world’s largest market in preserved ginger. This is because preserved ginger finds a place in an array of Japanese food. There is also the prospect of a modest market for preserved ginger in the United States and western European countries, especially to cater the ethnic taste. The Chinese segment is, in particular, important in this context. However, the growth in this segment can only be modest, as of now, and also in the future.
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Table 24.9 Unit–Price Ratio for Various Exporting Countries From 1994 to 1998 Country
1994
1995
1996
1997
1998
1994–1998
China Thailand Indonesia Brazil Taiwan Costa Rica India Nigeria Vietnam Malaysia United States Others
0.90 0.87 0.54 1.61 3.18 1.19 1.23 0.74 0.50 0.35 1.99 1.77
0.83 1.06 0.51 1.64 3.83 1.33 2.07 0.97 0.67 0.43 1.96 1.53
1.17 0.91 0.43 1.11 2.00 0.89 1.06 0.85 0.57 0.32 0.86 0.96
1.03 0.82 0.62 1.26 2.43 1.01 1.20 1.16 0.89 0.37 1.04 1.12
0.94 0.73 0.48 1.36 3.21 1.10 1.80 1.36 0.56 0.38 1.45 1.65
0.96 0.86 0.53 1.35 2.76 1.10 1.40 1.06 0.66 0.36 1.29 1.33
Competitiveness of Indian Ginger Industry In order to understand better the position and competitiveness of individual exporters in world trade of ginger, market shares and unit value ratios were calculated and are presented in Table 24.9. In the absence of time-series data on prices for individual products from various countries, the unit price was worked out from the value of the export and quantity exported. While calculating unit price, individual items of export were not taken into account. Hence, there is bound to be slight variation depending on the share of value-added products in the export basket of individual countries. However, the estimated unit–value ratios help in comparing the prices of each exporting country with another and with the average of total exports. The ratio is computed by dividing the price received for a country’s export by the world average price. When the unit–price ratio is less than 1, then it is considered that the country possesses competitiveness in the export market for its product. Accordingly, as can be observed from the data in Table 24.9 that Indonesia, China, Thailand, Vietnam, and Malaysia with a unit–price ratio less than 1 are highly competitive, whereas India, with an average unit–price ratio of 1.40, is less competitive in its price structure in the world market. Any country’s competitive power in exporting a commodity depends crucially on its relative price and the quality of that commodity over the competing countries. India has a weak competitive position in the international market for ginger, which is mainly because of a very low productivity of 3357 kg/ha as compared to 55,636 kg/ha of the United States, and an average world productivity of 10,179 kg/ha (FAO, 2003). Moreover, the increased cost of production due to lower productivity of Indian ginger compared to that of other producing countries makes it imperative for India to increase its ginger productivity, which also can reduce the cost of production. The country has enough potential to increase its ginger productivity. To be
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successful in the changing environment, it is essential to be innovative and proactive. India, being the major producer of ginger in the world, stands seventh in ranking when its performance is compared with that of other countries. The gross margin is a good measure for comparing the economic and productive efficiency of similar-sized farms. More importantly, it represents the bare minimum that a farm must generate in order to stay in business. The cost–benefit ratio worked out for ginger production in the United States was 1.34. Productivity achieved on the ginger farms of Hawaii ranged from 50,000 lbs/acre to a low of 27,500 lbs/acre. The reported average returns for the farm with a productivity of 46,200 pounds depends not only on the yield but also price.
Risks and Uncertainty Risk is inherent in all of agriculture, but the ginger industry appears to be more exposed to risk than many other agricultural endeavors (Fleming and Sato, 1998). A review by the Hawaii Agricultural Statistics Services (HASS) reveals considerable volatility in ginger price and yield, with relatively little correlation between the two variables. In addition to abruptly fluctuating prices, ginger is relatively susceptible to serious disease problems, providing an ever-present possibility for a disease problem to reduce yields sharply (Nishina et al., 1992). A sustainable ginger economy is possible only when these risks are minimized. Along with price risk, cash-flow implications are the perceived crop risk for a crop such as ginger. This is related to age to first bearing and longevity of the crop. Production and marketing risks are greater the longer the crop takes to bear and the greater the life of the crop. The length of the harvest period also has its risks: the longer the harvest period, the greater the risk of failure. Vinning (1990), in the Australian Centre for International Agricultural Research (AICIAR) technical report for marketing perspectives on a “Potential Pacific Spice Industry,” has given crop failure ratings for different spice crops, based on the above points. It was found that ginger topped the list as a “high risk” commodity, followed by vanilla. The ginger industry is facing risk and uncertainty in different forms. Each country has to face considerable competition from other ginger-producing countries because of many new countries entering into the ginger industry in recent years. Over the years, India has lost its market to China and Indonesia, as is the case in the case of cardamom, where India lost the market to Guatemala. This is primarily because of the competitive price edge in the case of Chinese and Indonesian ginger as compared to India’s. From the point of view of Indian farmers, the prices have been generally good during the past decade, although there was a drastic reduction in 1996 and 1997 and 2001 and 2002. During 1999–2000, ginger farmers received an all-time high price, which was more than double the price in the preceding year. The price was always above the break-even point, with the average of US 10 cents/kg for fresh ginger in the northeastern states, where fresh ginger is marketed, thus leading to profitable ginger farming.
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The price for dry ginger was well below the break-even point in the 1980s and in the early 1990s, as well. From 1982 to 1984 and 1993 to 1995, the price almost doubled. In addition to this abrupt fluctuation in price, the ginger crop is also highly susceptible to serious disease problems, leading to a reduction in rhizome yield, and an unmarketable production. At times, the farmer might lose up to 80% of the crop toward harvest time. Thus, the ginger crop industry is influenced by the risk factors associated with yield and seasonal price fluctuations, though these factors seem unrelated on a long-term basis. However, the ANOVA indicates that the price variability of ginger is greater than the yield variability. Some of the policy measures appropriate to the ginger industry are the following: 1. Healthy seed production through the “Seed Village Concept” by regular field monitoring for diseases and pests, and enforcing seed certification measures. 2. Impose quarantine measures to restrict free and uncontrolled movement from one place to another, especially where bacterial wilt is endemic. 3. An integral approach to control the most serious problem in ginger cultivation—the prevalence of rhizome rot. This could be further complicated by bacterial, fungal, and insect attack on the ginger plant. 4. High fiber content and high cost of production are the deterrents which make Indian ginger uncompetitive, both qualitywise and pricewise. Ginger breeding must focus especially on the former, while ginger agronomy should focus on the latter. 5. Develop cropping systems most suited to ginger as an intercrop, especially in coconut and arecanut gardens. In developing such cropping systems, adequate attention must be given to the cost–benefit ratio. 6. Value addition is a key component in making the ginger market attractive and profitable. The global scenario, where reexport from EU countries show that India has to learn how best to exploit this avenue. 7. Since the importing countries, especially Japan, the United States, and EU countries are highly quality conscious, there is an imminent need to focus more on postharvest measures, where the end produce is free of all extraneous materials, including pesticide residue. Good and attractive packing makes the ginger market more consumer friendly. 8. Indian farmers need to be urgently educated on various aspects of ginger production, right from sowing to harvest and proper postharvest technology. As of now, many are not properly oriented, neither is there a concerted effort to bring them up to international standards. 9. High-value organic farming is an emerging market. There is a great urgency to popularize the concept among as many ginger farmers as possible to reap the full benefit of global ginger marketing from this segment. 10. There should be no mistaking that value addition confines only to the manufacture and sale of ginger derivatives, such as oleoresins and volatile oils. One EU document reveals that in the export market, “Buyers are looking for clean, well flavored, artificially dried product with high hygiene levels, in contrast to the bulk of the materials which has been sundried on the ground” (Commonwealth Secretariat, 1996, p. 45).
For the successful implementation of the above-mentioned policy-related suggestions, there is an imminent need to develop a special database regarding all aspects of ginger-based crop production, which include marketing, employment potential, production techniques, cost of cultivation, and value addition. This in turn, will help in creating decision support systems to benefit the stakeholders, both producer and consumer.
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References Anonymous, 1996. Guidelines for Exporters of Spices to the European Market Commonwealth Secretariat, London UK. DASD, 2002. Arecanut and Spcices Database. Directorate of Arecanut and Spices Development (DASD), Calicut, Kerala State. Datta, S.K., Singh, G., Chakrabarti, M., 2003. Ginger and its products: management of marketing and exports with special reference to the eastern Himalayan region. National Consultative Meeting for Improvement in Productivity and Utilization of Ginger, 12–13 May 2003, Aizwal, Mizoram, India. FAO, 2003. FAOSTAT, FAO, Rome
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Spices Board, 1990. Production and Export of Ginger Status. Spices Board, Cochin, Kerala State. Spices Board, 1992. Report of the Forum for Increasing Export of Spices. Spices Board, Ministry of Commerce, Government of India, Cochin, Kerala State. Spices Board, 2008. Report on the Domestic Survey of Spices (Part I). Spices Board, Ministry of Commerce, Government of India, Cochin, Kerala State. Sreekumar, M.M. Arumugham, C., 2003. Technology of fresh ginger processing for ginger oil and oleoresin. National Consultative Meeting of Improvement in Productivity and Utilization of Ginger, 12–13 May 2003, Aizwal, Mizoram, India. Vinning, G., 1990. Marketing Perspectives on a Potential Pacific Spice Industry. Australian Centre for International Agricultural Research, Canberra, Australia, (ACIAR Technical Reports No 15. p. 60).