Ginger prices surge amid dollar shortage, reduced supply

Ginger prices have surged in Bangladesh as imports of the spice have become costlier amid the ongoing US dollar shortage and a recent global supply crunch resulting from lower production.

Bangladesh can produce about 2 lakh tonnes of ginger against its annual demand of 3.5 lakh, meaning that the rest is met through imports, according to the state-run Spice Research Centre.

Both imported and locally grown varieties of ginger are now selling for as much as Tk 340 per kilogramme (kg), up from Tk 320 and Tk 240 respectively a week ago, shows data from the Trading Corporation of Bangladesh (TCB).

If the root is of smaller size and lesser quality, the price is Tk 240 in case of imported ginger and Tk 320 for local ginger, up from Tk 180 and Tk 220 respectively over the past seven days.

Both imported and locally grown varieties of ginger are now selling for as much as Tk 340 per kilogramme, up from Tk 320 and Tk 240 respectively a week ago

However, retailers looking to make extra profit from the dearth in supply are selling imported ginger for Tk 250 per kg while local ginger costs Tk 400, said Noor-e-Alam, a retailer based in Dhaka's Tejturi Bazar.

The price of imported ginger increased by 53.85 per cent per kg over the past month while year-on-year growth registered a staggering 185.71 per cent as of yesterday.

Similarly, the price of local ginger rose by 45.65 per cent per kg over the past month and 179.17 per cent year-on-year, as per the TCB.

The recent surge in ginger prices has left many buyers in distress, particularly those in the middle and lower-middle-income segments, who now find it difficult to afford the key cooking ingredient.

Fatima Begum, a housewife living in Dhaka's Shyamoli, said the soaring price of ginger means having to compromise on the quality of her family's meals.

Alamin Hossain, who operates Alamin Restaurant House in Dhaka's Farmgate, said having to pay more for ginger will force him to raise his own prices or compromise on the quality of food provided.

"I am absolutely outraged by the hike in ginger prices as it is taking a bite out of my pocket," he added.

Mujahid Plaban, a wholesaler based in Karwan Bazar, one of the capital's biggest kitchen markets, said the current price of imported ginger is Tk 11,200 per maund (37 kilograms) while local ginger costs Tk 8,400 per maund.

Just a month back, imported ginger was priced at Tk 6,800 per maund while the same amount of local ginger was Tk 4,400, he added.

Abul Kalam, a ginger importer, said prices have risen in the country as the ongoing US dollar shortage has made it difficult to source the spice.

"For example, banks will only open letters of credit for importing two containers of ginger even if I apply for 20," he added.

Taka lost about 25 per cent of its value against the US dollar over the past year as the country's foreign exchange reserves have been depleting fast amid growing global commodity prices and other crises.

But aside from higher import costs, ginger prices have also risen due to reduced supply from producers such as India, China and Myanmar, traders say.

The price of ginger sourced from China has surged to about $3,000 per tonne from $1,300 a month ago due to inadequate weather conditions during the cultivating period, which begins in early spring and ends in winter.

So, the market may stabilise next season if there is adequate rain in India and other producing nations in the meantime, they said.