Ginger traders no longer insignificant, now gain market influence
Over the past three years, ginger prices in Bangladesh have fluctuated between Tk60 and Tk300 per kilogram, mostly staying within Tk100-150 range
There is a well-known Bengali saying, "Adar byaparir jahazer khobor," which means "a ginger trader worrying about ships," used to describe insignificant people fretting over big issues. However, ginger traders, once considered insignificant, are now far from it. The ginger market is expanding rapidly.
According to data from Volza, an international import-export service provider, Bangladesh is the world's second-largest ginger importer. The country imports over 150,000 tonnes of ginger annually. The United States ranks first in ginger imports, with India in third place.
A 2023 report from the Department of Agricultural Marketing indicates that the annual demand for this essential spice in Bengali cuisine exceeds 300,000 tons. In the fiscal year 2022-23, Bangladesh produced approximately 192,000 tons of ginger. To meet the total demand, 42-45% of the ginger must be imported. This is sourced from China, India, Indonesia, Myanmar, and Thailand, amounting to 100,000-150,000 tonnes yearly. The total ginger market in Bangladesh is valued at around Tk30-35 billion.
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Due to ginger's perishable nature, it can't be imported in large quantities at once. Instead, it is imported throughout the year in special refrigerated containers.
Therefore, ginger traders must constantly keep track of ship movements. Importers and traders need to monitor when and how much ginger is arriving in the country, as supply fluctuations affect market prices. They also need to stay informed about international markets and currency exchange rates.
The rise of ginger traders
Conversations with ginger traders in Khatunganj, the largest wholesale market for consumer goods in Bangladesh, revealed that until the 1980s, Bangladesh was largely self-sufficient in ginger production. Ginger shipments would come from all over the country to Khatunganj. After meeting domestic demand, traders even exported a small amount of ginger.
However, from the mid-1990s, as demand increased rapidly, ginger production began to decline, leading to market shortages. To fill this gap, Khatunganj-based importers started importing ginger from China. As demand continued to rise, importers in Shyambazar, Dhaka, began importing ginger through various land ports from India.
Data from the Department of Agricultural Extension shows that in the fiscal year 1990-91, 42,680 tonnes of ginger were produced on 7,020 hectares of land. Despite an increase in cultivation the following year, production fell to 41,535 tonnes on 7,059 hectares. Production continued to decline yearly, reaching 38,265 tons in 1999-2000.
Importing ginger
Mohammad Zahir Uddin, Director of Fulkoli Group, the largest ginger importer in Chittagong, says that although the demand for ginger in Bangladesh has increased several times, production has not increased proportionately. Therefore, ginger imports have increased to meet the demand. Since 2003, they have been importing ginger, bringing in 25-30 containers per month, each containing 27 tonnes. Annually, they import and supply 8,000-10,000 tonnes across the country.
Another importer, Abul Kalam Azad, says that previously, ginger was imported only from China, Indonesia, and Thailand. The market was centered in Khatunganj. With imports from India and Myanmar, traders from different parts of the country started importing ginger, spreading the market.
Domestic market and price fluctuations
Over the past three years, ginger prices in Bangladesh have fluctuated between Tk60 and Tk300 per kilogram, mostly staying within Tk100-150 range. Considering the demand of 300,000 tonnes, the total ginger market is valued at around Tk30-35 billion, with import costs accounting for Tk15-20 billion.
China was the largest source of ginger imports for Bangladesh. In 2019, out of 139,000 tons imported, 45% came from China. During the COVID-19 pandemic in 2020, imports from China decreased, and India became the top source for ginger imports in 2020 and 2021. Myanmar became the top source in 2022, with 40% of the 165,000 tonnes imported coming from there.
However, imports from China have increased again in 2023. Importer Zahir Uddin says that China is the world's largest exporter of ginger, and their ginger is of the best quality. If demand increases or production decreases in China, global prices rise. Recently, the booking rate for ginger in China is $1,650 per tonne. Including duties and other expenses, the import cost per kilogram is Tk220-230, and it sells for Tk260-270 in the market.
Challenges of import dependence
A 2023 report by the Department of Agricultural Marketing attributes rising ginger prices to import dependence and limited production. Other factors include a lack of storage facilities during the production season, a shortage of quality seeds, and the influence of middlemen.
Ginger traders in Khatunganj say prices increase every year around the two Eids. Additionally, supply shortages or increased booking rates in China can also drive up prices, causing inconvenience for consumers. During Ramadan, demand for ginger doubles, and prices increase as it cannot be stored in cold storage to double the supply.
During Eid-ul-Adha, a large amount of ginger is needed to cook the meat of sacrificial animals, increasing demand and prices.
Hope in alternative cultivation methods
Bangladesh's climate is well-suited for ginger cultivation, with warm and humid conditions being ideal. Ginger grows well in slightly shaded areas, and can be cultivated from sea level up to 1,500 metres in hilly regions. High, well-drained land is suitable for ginger cultivation, with loamy soil being ideal. Ginger is cultivated across Bangladesh, particularly in the Chittagong Hill Tracts, Tangail, Dinajpur, Nilphamari, and Lalmonirhat districts. Annually, ginger is grown on 7,000 hectares with an average yield of 5.5 tonnes per hectare.
However, due to the 9-10 month cultivation period, farmers lost interest in ginger farming. Recently, success with bag cultivation of ginger has renewed interest in commercial farming.
Bag cultivation helps maintain soil moisture and prevents weeds, which can hinder ginger growth and reduce yield. Bags also prevent waterlogging during the rainy season, resulting in higher yields compared to traditional methods. This alternative method has started gaining popularity in various districts, allowing cultivation in home gardens, rooftops, fallow lands, and mango orchards.
If this trend continues, ginger production is expected to increase in the coming years, potentially bringing prices within reach, according to traders.
