The premium Arunachal Pradesh ginger has benefited its growers after the Tibet-bordering northeast India state signed a 5,000-tonne export agreement.
Arunachal Pradesh’s Agriculture Marketing Board (APAMB) signed the 350 million-rupee ($4.17 million) agreement with RC Roy Associates on September 8, 2024.
During the drafting of the pact, APAMB’s officials said that farmers will be getting payment through the board.
The mouthwatering deal will see the company advance 30% of its total purchase to farmers at the outset.
Its starting farm-gate offer is 20 rupees ($0.24) per kg, which will keep changing depending on the market prices.
Local markets in particular influence market prices in India because produce first arrives here. On September 9, 2024, these markets were selling ginger at between 130 and 210 rupees ($1.55 and 2.50) a kg across India.
Considering the above fluctuating market rates, the flexible Arunachal Pradesh ginger deal will bring farmers an estimated 300 million rupees ($3.57 million).
Hence, APAMB’s Chief Executive Okit Palling called the deal among the biggest in the state’s agricultural annals for a “single product.”
In addition, agricultural officials urged farmers and the export company to each ensure perpetuity of supplies and reasonable price, respectively.
While overseeing the Memorandum of Understanding, India’s Agriculture Minister Gabriel D. Wangsu praised the state’s native ginger species. He added that the agreement will perpetuate this superior-tasting type and discourage the growing of other species.
With its signature spice, the state is among the key producers of the aromatic vegetable in India. Its output here, for instance, reached 35,276 tonnes in the 2020-21 season.
The northeast India region as a whole consists of national ginger powerhouses such as Manipur, Nagaland and Assam.
Thus, the export deal insures many farmers with consistent export connections without relying on unpredictable mandi rates. There are also local markets for surplus since ginger is always in demand in India, as the following statistics illustrate.
India and Arunachal Pradesh Ginger Statistics
India is not only the world’s leading producer of ginger but its consumer, too, at 43% of the global output. In production, the country reaped 2,225,000 tonnes of ginger from some 205,000 hectares in 2021, according to FAOSTAT. The national yield rate was 10,723 kg a per hectare in this period. In 2022, however, both production and acreage would retract to 2,219,000 tonnes and 193,000 hectares, respectively. Despite the numerical dip, the country would still retain its number 1 global production status. Arunachal Pradesh, in its part, contributes the 12th highest ginger output in India but its variety is distinctly pungent.
How high is ginger consumption in India?
India leads worldwide consumption at 1.43 million tonnes of the spice per year, as of 2020, according to Indexbox. This represented 43% of the global consumption total or thrice that of runner-up, Nigeria, at 762,000 tonnes.
What is the export rank of India for ginger exports?
Because India consumes most of its ginger, it is not the top exporter. Indeed, it was only 4th in 2022 with an export value of $70.7 million, according to OEC. China led 2022 exports at $449 million, with the Netherlands and Peru following with $91.8 and $72.5 million respectively.
What is the ginger production ranking of Arunachal Pradesh?
In the 2020-21 season, Arunachal Pradesh ranked 12th nationally, with production at 50,683 tonnes. Its yield rate, at 6,905 kg a hectare in the 2020-21 season, put it among the 9 best-yielding states. The year’s biggest production states were Madhya Pradesh with 48,073 tonnes , Karnataka with 249,911 tonnes and Assam with 167,803 tonnes.