A Market Study of Nepalese Ginger and Its Derivative Products in India...

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A Market Study of Nepalese Ginger and Its Derivative

Products in India and Bangladesh

Submitted to: FAO-Nepal

Prepared by:

ANSAB-Nepal

P. O. Box: 11035, Kathmandu, Nepal

Ph: +977-14497547, 4478412

Fax: +977-1-4476586

February 2015

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Contents

Acknowledgements .................................................................................................................. v

Acronyms and Abbreviations ................................................................................................ vi

Executive Summary ............................................................................................................... vii

1. Introduction and Methodology ....................................................................................... 1

1.1 Background ................................................................................................................. 1

1.2 Objectives and Scope of the Study .............................................................................. 1

1.3 Approach and methodology ........................................................................................ 2

1.4 Limitations .................................................................................................................. 3

1.5 Organization of the study ............................................................................................ 3

2. Global Ginger Industry and Nepal’s Position ............................................................... 4

2.1 Production ................................................................................................................... 4

2.2 Trade............................................................................................................................ 6

2.3 Standards ..................................................................................................................... 8

3. Ginger Industry in Nepal .............................................................................................. 10

3.1 Production ................................................................................................................. 10

3.2 Trade.......................................................................................................................... 11

4. Ginger Industry in India ............................................................................................... 19

4.1 Production ................................................................................................................. 19

4.2 Trade.......................................................................................................................... 21

4.3 Rules and regulation for importation in India ........................................................... 27

4.4 Status and prospects of Nepali ginger in Indian markets .......................................... 29

5. Ginger Industry in Bangladesh..................................................................................... 31

5.1 Production ................................................................................................................. 31

5.2 Trade.......................................................................................................................... 31

5.3 Rules and regulation for importation in Bangladesh ................................................. 35

5.4 Status and prospects of Nepali ginger in Bangladesh ............................................... 36

6. Conclusion and Ways Forward .................................................................................... 38

6.1 Summary of market observations .............................................................................. 38

6.2 Major constraints observed ....................................................................................... 38

6.3 Ways forward ............................................................................................................ 40

References ............................................................................................................................... 44

Annexes ................................................................................................................................... 46

Annex 1: Brief on ginger, its derivatives and their usage .................................................... 47

Annex 2: Quality Standards for Export ............................................................................... 49

Annex 3: Codex standard for ginger (CODEX STAN218-1999) ........................................ 51

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Annex 4: Top 10 countries in terms of ginger production quantity ..................................... 55

Annex 5: Top 10 countries in terms of ginger production area ........................................... 55

Annex 6: Varieties of ginger in India .................................................................................. 55

Annex 7: Market arrival of ginger in Azadpur market ........................................................ 57

Annex 8: Agmark standards of ginger classification ........................................................... 58

Annex 9: List of Importer from Bangladesh ........................................................................ 59

Annex 10: List of importers in India.................................................................................... 61

Annex 11: Organization and individuals visited .................................................................. 62

Annex 12: Region wise production and area of ginger in Bangladesh from 2006/7 to

2013/14 ................................................................................................................................ 65

Annex 13: Monthly and yearly average wholesale price of local and imported ginger of

Bangladesh ........................................................................................................................... 66

List of Tables

Table 1 Trade indicators of major importing countries of ginger worldwide ............................ 7

Table 2 Trade indicators of major exporting countries of ginger worldwide ............................ 8

Table 3 List of major market centres in five Development Regions of Nepal ........................ 12

Table 4 Ginger processing capacities and types of products in various districts of Nepal ...... 18

Table 5 Trend of ginger production in various Indian states ................................................... 20

Table 6 Ginger cultivars grown in different states/union territory .......................................... 21

Table 7 Major country of ginger export by India in 2011/12 and 2012/13 ............................. 25

Table 8 Major importing partner countries of India ................................................................ 26

Table 9 Trend of ginger production in various regions of Bangladesh ................................... 31

Table 10 Import values of ginger in Bangladesh from different countries .............................. 35

Table 11 Summary of quality features of various types of ginger traded in Dhaka ................ 36

Table 12 Summary of the markets overviews.......................................................................... 38

List of Figures

Figure 1 Trend of area and volume of production of ginger...................................................... 4

Figure 2 Trend of production quantity of top 10 ginger producing countries ........................... 5

Figure 3 Trend of ginger production area of top 10 countries ................................................... 6

Figure 4 Trend of total world import value of ginger ................................................................ 7

Figure 5 Production trend of ginger in Nepal .......................................................................... 10

Figure 6 Marketing channel of ginger in Nepal ....................................................................... 12

Figure 7 Producer price trend of Nepali ginger in USD/MT ................................................... 13

Figure 8 Trend of wholesale price of fresh and dried ginger in Kathmandu and Nepalgunj in

2014.......................................................................................................................................... 13

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Figure 9 Export volume and value trend of ginger from Nepal ............................................... 14

Figure 10 Share of various forms of ginger in total ginger export from Nepal in 2013 .......... 15

Figure 11 Export quantity of ginger from Kakarbhitta customs .............................................. 15

Figure 12 Ginger exports from major customs point ............................................................... 16

Figure 13 Ginger import trends in Nepal ................................................................................. 17

Figure 14 Export and import value comparison of ginger in Nepal ........................................ 18

Figure 15 Trend of production and area of ginger in India ...................................................... 19

Figure 16 Comparison of India’s production and import from Nepal in various years ........... 20

Figure 17 Trend of yearly total market arrival of ginger in India ............................................ 22

Figure 18 Total market arrivals of ginger in various major cities in months of 2014 ............. 22

Figure 19 Trend of yearly average wholesale price of ginger in India .................................... 23

Figure 20 National average wholesale price and total market arrival of ginger in various

months of 2014 ........................................................................................................................ 23

Figure 21 Trend of ginger export from India ........................................................................... 24

Figure 22 Export of different forms of ginger from India in 2012/13 ..................................... 24

Figure 23 Import trend of ginger by India from 2003/04 to 2012/13 ...................................... 26

Figure 24 Import value of ginger in India in 2012-13 (USD million) ..................................... 26

Figure 25 Trend of ginger import in India from Nepal ............................................................ 27

Figure 26: Sack being cut for quality inspection ..................................................................... 29

Figure 27: Indian ginger variety .............................................................................................. 30

Figure 28: Various dry ginger varieties available in Delhi market .......................................... 30

Figure 29 Trend of ginger production and cultivated area in Bangladesh ............................... 31

Figure 30 Price trend of local and imported ginger in Bangladesh ......................................... 32

Figure 31 Price trend of local and imported ginger in Bangladesh in various months of 2014

.................................................................................................................................................. 33

Figure 32 Trend of quantity and value of ginger imported by Bangladesh ............................. 34

Figure 33 Forms of ginger imported in Bangladesh in 2013 ................................................... 34

Figure 34 Export of ginger to Bangladesh from Nepal............................................................ 35

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Acknowledgements

This study has been made possible through the generosity and support of many people,

organizations and institutions. The team is grateful to FAO Nepal for providing the

opportunity to conduct this study. In particular, we would like to thank Mr. Arjun Singh

Thapa, Programme Officer and Dr. Deepak Mani Pokhrel, Project Manager (GCP) for their

continuous support for the study. Thanks are due to Mr. Pradeep Maharjan, CEO,

AEC/FNCCI, Mr. Narendra Kumar Khadka, President and Hemanta Raj Bohora, Secretary of

Nepal Ginger Producers and Traders' Association for their support throughout the study. We

appreciate the support received from Mr. Osman Ghani from Bangladesh and Mr. Janak Raj

Rawal, Mr. Raj Grover and Mr. Rakesh Agrawal from India during our field visit.

We are thankful to Dr. Bhishma P. Subedi, Executive Director, ANSAB, for guidance and

valuable insights and inputs, to Dr. Kalyan Gauli for his participation in survey in India, to

Ms. Olena Bednarchuk, ANSAB volunteer for editorial support, and to administrative staffs

for the logistic supports. We are also thankful to, for sharing his practical experience.

Our gratitude goes to the informants of various government agencies including: Regional

Plant Quarantine Offices, Trade and Export Promotion Centre, Nepal Spice Crop

Development Program of Nepal; Department of Agriculture Marketing, Trading Corporation

of Bangladesh and Bangladesh Bureau of Statistics of Bangladesh; Plant Quarantine Office

and Custom Office of India; and various development organizations including SAMARTHA,

SAWTEE for their cordial company and sharing of valuable information with the study team.

We thank all those who have directly or indirectly provided support in executing field level

activities of the study, shared valuable information, and participated strongly in the meetings,

interactions and focus group discussions at the local, national to international levels.

Study Team

Puspa Lal Ghimire and Kabir Ratna Sthapit

ANSAB - Nepal

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Acronyms and Abbreviations AEC Agro Enterprise Centre

ANSAB Asia Network for Sustainable Agriculture and Bioresources

ASTA American Spice Trade Association

BIS Bureau of Indian Standards

CIF Cost, Insurance and Freight

ESA European Spice Association

EU European Union

FAO Food and Agriculture Organization

FOB Free On Board

FSSAI Food Safety and Standards Authority of India

GCP Ginger Competitiveness Project

ha Hectare

INR Indian Rupees

ITC International Trade Centre

L/C Letter of Credit

MoAD Ministry of Agricultural Development

MoCS Ministry of Commerce and Supply

MRL Maximum Residue Level

MT Metric ton

NEAT Nepal Economic Agriculture and Trade

NGPTA Nepal Ginger Producers and Traders Association

NPR Nepalese Rupees

NSCDP Nepal Spice Crop Development Program

PFA Prevention of Food Adulteration

SAWTEE South Asia Watch on Trade, Economics and Environment

SNV Netherlands Development Organization

SPS Sanitary and Phytosanitary

TBT Technical Barriers to Trade

TEPC Trade and Export Promotion Centre

USD United States Dollar

VDD Vegetable Development Directorate

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Executive Summary Ginger is one of the major spice crops of Nepal and is traditionally grown in the middle

mountain areas for cash income of rural communities. Not only has ginger been responsible

for fulfilling the domestic demand, ginger has also remained to be one of Nepal’s major

export commodities. It is one of the prioritized export commodities of the Nepal Trade

Integration Strategy (NTIS, 2010). Currently the export has been mainly limited to India.

This study tries to analyse the market situation and opportunities of Nepalese ginger in India

and Bangladesh along with a brief discussion on domestic and global perspectives.

Global ginger industry: Globally, the production and productivity of ginger is steadily

increasing with an average annual production growth rate of 6.25 per cent and annual yield

growth rate of 7.86 per cent from 2003 to 2013. However, during the same time period the

annual growth rate of area-harvested is negative (-1.50 per cent). India and China have

remained the major leading countries in production. Nepal is in the third position with the

share of 12 per cent of the total world production in 2012. The world import of ginger is

573,942 MT worth of USD 714 million. There has been an annual growth rate of 11 per cent

in terms of value and 8 per cent in terms of quantity from 2009 to 2013. Japan is the top

importer of ginger with a share of 14 per cent of the world’s ginger import followed by USA

and the Netherlands in 2013. Globally, Bangladesh is the fourth largest importer of ginger.

China has remained the major exporter of ginger for more than a decade. It is the major

exporting partner of top importing countries with 61.7 per cent of share in the world exports.

Currently, there is no single globally accepted standard for quality assurance of ginger;

however, the most popular codes in use are as set by the American Spice Trade Association

(ASTA) as well as the European Spice Association (ESA). Similarly, there are several

country specific standards that are derived by the Indian Spice Board.

Ginger industry in Nepal: In Nepal, ginger is being cultivated in 19,376 hectares of land

with production of 235,033 MT in 2012/13. The production of ginger has been increasing

with an average growth rate of 12 per cent. Ginger is produced in all the Development

Regions of Nepal with the major ginger production districts being: Ilam, Salyan, Palpa,

Nawalparasi, Morang, Doti, Kailali, Tanahu, Surkhet, Sindhupalchok, Syangja, Makwanpur,

Sindhuli and Kaski. Locally, there are two types of ginger known as nashe (with high fibre

content) and boshe (less fibre and thick rhizome), which are popular in the country. In

Pachthar and Tehrathum districts, there is another type of variety known as bhainse, which

has a larger rhizome.

The marketing channel usually consists of farmers, road head traders, district traders and

processors/exporters. While exporting to India, ginger is usually provided to Indian

commission agents, who work for 6-7 percent of sales commission. Domestic trade is mainly

focused in major urban areas as the rural people usually plant their required quantity of

ginger in their home gardens. Nepal exported 35,907 MT of ginger in 2013 with a value of

USD 8.78 million. In 2013, the share of fresh ginger was 96 per cent in total exports and only

4 percent in dried form of which 0.02 percent was in powdered form. India has remained the

major importing partner with 99 percent of total ginger exports in 2013. The major export is

done during the season of ginger harvesting, which is from Oct/Nov to Dec/Jan.

The informal trade of ginger is popular due to porous Indo-Nepal border and growing

inaccuracies during export invoicing. When considering domestic consumption and general

trade practices, the total volume of ginger being exported is estimated to be more than double

of the official figure. Informal trade has been increasing due to non-tariff barriers, which

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include various difficulties and added costs in obtaining import permits and a certificate of

test or analysis of food sample issued by regional food labs in India, value limitations in

clearing the consignments and the overall cost reducing attitudes of traders. Other barriers

include: lack of formal banking channels used in transactions while exporting to India, as

well as multiple taxation and other informal fees.

Nepal also imports some ginger especially during off-seasons. China has been the leading

supplier of ginger in Nepal. In 2013, imports from China to Nepal were at 71 per cent

followed by India with 17 percent of the total ginger import.

The present ginger processing capacity of Nepal is very limited with seven processing units

and with a processing capacity of approximately 90 MT/day. Most of them are washing

centres with the final product being washed ginger.

Ginger industry in India: India is the largest producer and consumer of ginger in the world.

In 2012/13, India produced 682,630 MT of ginger. Ginger is produced in almost all the states

of India with the major states of ginger production being: Karnataka, Orissa, Assam, Gujrat,

Meghalaya and Arunachal Pradesh. Cochin Ginger and Calicut Ginger are the two popular

varieties coming from India, mainly for their quality. The production in Karnataka is highly

fluctuating, and it can be analysed to have effects in Nepal’s export price, as the produce

from Karnataka is one of the major competitors of Nepali ginger. Out of the total Indian

production, about 30 percent is converted into dry ginger, 50 percent is consumed as green

ginger and the remaining 20 per cent used as seed materials.

From 2004 to 2014, there has been an increasing trend in the total market arrival of ginger in

major market places of India with fluctuating supplies in some years. Major ginger markets in

India are found in: Mumbai, Chennai, Hyderabad, Delhi and Bangalore. For Nepali ginger,

Delhi, Kolkotta, Lucknow and Patna are major markets. Nepali ginger is mainly used for

domestic consumption. Fresh ginger from eastern regions of Nepal goes mainly to Siliguri

and Kolkata, and comparatively a small quantity to Delhi, Amritsar, and Lucknow via

Naxalbari; and ginger from western regions of Nepal mostly goes to Gorakhpur, Lucknow,

Kanpur, Delhi and surrounding areas.

India itself is one of the major ginger exporting countries with a share of 4.2 percent in total

global ginger export value. India exports fresh, dry, powder and oleoresins with the highest

export value from dried ginger. The import of ginger in India is done mostly to fulfil

domestic demand whenever there is a fall in its domestic production. Fresh and dried are the

two major forms of imported ginger. In the year 2012/13, 71 per cent of Indian imports were

made up of Nepali ginger. For the import of ginger in India, the consignment must pass

through various procedures while in quarantine, including: food safety, labelling and

packaging laws, and other rules and regulation. The import consignments of plant and plant

products are inspected by the Plant Quarantine Authorities to verify the absence of infestation

by quarantined pests and diseases before being cleared for release by Customs. Similarly, The

Food Safety and Standards Act 2006 governs packaging and labelling, food additives,

product standards, licensing and registration of food businesses and maximum residue levels

of contaminants.

Due to open border, long socio-cultural intimacies and bilateral trade agreements, Nepal's

trading with India is easier than with other countries. However, Nepali ginger does not have

as good of a reputation and image as compared to Indian cultivars due to lack of grading

mechanisms and varying quality (i.e. smaller pieces, fibrous, and brown in colour) resulting

in lower prices for Nepalese ginger. The large market size, the increasing demand of ginger

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especially in the pharmaceutical sector and the special bilateral trade provisions have

provided good prospects to expand the market of Nepali ginger in India.

Ginger industry in Bangladesh: As ginger production in Bangladesh does not suffice its

consumption needs, Bangladesh needs to import (47 per cent of its estimated consumption) to

fulfil the domestic demand. Rangamati, Rangpur, Tangail, Chittagong, Khagrachhari and

Dinajpur are the important ginger growing districts of Bangladesh. The ginger production

trend in Bangladesh has become almost stable in the last 5 years with 77,035 MT of

production in 9,483 ha of land in 2012/13.

Two types of ginger varieties – Chinese and local – are dominant in Bangladeshi markets.

Local ginger is available in markets during the main harvesting seasons, whereas Chinese

ginger is found throughout the year. Chinese ginger occupies 75 per cent of the total share of

ginger imports in Bangladesh. Bangladesh also imports ginger from India, Indonesia,

Thailand and Nigeria. Indian varieties are mostly available during November to February.

Among the Indian varieties Bangalore and Hassan are popular in Bangladesh. The ginger

from Mizoram, which is also known as 'black ginger' due to its black appearance, is also

available. The supply of ginger from Indonesia and Thailand is highly fluctuating. Export

data of Nepal shows some ginger export to Bangladesh from 2009 to 2012 with highest

export of 225 MT in 2010, and no export in 2013. Bangladesh is the fourth biggest importer

of ginger worldwide in terms of value (USD 46 million) in the year 2013, which accounts to

be 6.5 per cent of the world’s total import value. The trend of import has been increasing. The

ginger is imported mostly in fresh form. The Plant Quarantine Act, 2011 provides Plant

Protection Wing authority to monitor imports, which includes search, seizure and forfeiture

of the import of plant and plant products. According to the Act, no importer shall, without an

import permit, import any plant or plant product, beneficial organism, soil or packing

materials to Bangladesh. Similarly, the Phytosanitary Certificate should, in addition, declare

that the consignments are free from sand, soil and extraneous materials.

Since, there is negligible import of Nepali ginger, most of the ginger traders in Bangladesh

are unaware of Nepali ginger. Those who are familiar with Nepali ginger considered it to be

of low to medium quality. The major competitors for Nepali ginger in Bangladesh are

Chinese, South Indian (Kerala and Karnataka), North Indian (Mizoram and Siliguri) and

Bangladeshi ginger. Others include ginger from Indonesia, Bhutan, Nigeria and Thailand.

Being one of the neighbouring countries and one of the largest importers of ginger in the

world, Bangladesh has good prospects for Nepali ginger.

Major constraints and ways forward: There are major constraints facing the ginger sector

in Nepal. Ginger in Nepal faces high levels of competition with greater quality ginger due to:

less competitive varieties, lack of commercial approach in farming, lack of quality

consistency, lack of cleaning and washing facilities, lack of proper drying technology, local

multiple taxation and extra-legal payment during transportation, difficulties in meeting

sanitary and phytosanitary standards, high cost of custom clearance, low visibility, and transit

issues.

To increase its competitiveness in the global ginger sector and promote its export to India and

Bangladesh, Nepal needs to work throughout the entire value chain. Quality and price are the

major factors to be considered to make the products competitive in these markets. A two-

pronged strategy is proposed for developing the market in India and Bangladesh for Nepali

ginger and ginger products. The strategy will focus on: i) assurance of quality production of

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ginger and its derivatives and ii) support in marketing and branding for better market

penetration and market outreach.

The suggested recommendations in quality production and postharvest handling are i)

introduction of appropriate variety as per the market preference ii) farmers should be trained

in good agriculture practice (GAP) iii) practicing harvesting of mother rhizome, iv) proper

cleaning, grading, sorting, packaging v) establishment of commercial washing centres vi)

proper storage vii) establishment of modern technology dry ginger (sutho) making.

Similarly, in order to support the marketing and branding for better market penetration and

market outreach the suggested recommendations need to be implanted: i) strengthening of

distribution channel ii) developing auction markets iii) collective branding of ginger iv)

facilitation/participation in business meetings, trade fairs and exhibitions v) establishment of

a contact office in Bangladesh for a certain period and vi) establishment of an accredited

laboratory for facilitating the trade.

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1. Introduction and Methodology 1.1 Background

Ginger Competitiveness Project: Enhancing Sanitary and Phytosanitary Capacity of Nepali

ginger Exports through Public Private Partnerships (MTF/NEP/068) is an action-oriented

public-private partnership project in Nepal. It has been supporting ginger farmers and traders

to improve quality of fresh ginger supply for export, enabling farmers to benefit from higher

prices in the main export market (India) and to enter other profitable markets. The project

partners are the Ministry of Agricultural Development (MoAD), Food and Agriculture

Organization (FAO) Nepal, Agro Enterprise Centre (AEC) and Nepal Ginger Producers and

Traders Association (NGPTA). In a request from FAO-Nepal, ANSAB Nepal has carried out

this study focussing on markets in India and Bangladesh.

ANSAB Nepal, a sister organization of Asia Network for Sustainable Agriculture and

Bioresources (ANSAB), is an independent, non-profit, civil society organization working in

South Asia. ANSAB is committed to biodiversity conservation and economic development

through community-based enterprise oriented solutions. ANSAB is the pioneer in developing

and applying new approaches to promote natural products-based enterprises and value-chain

interventions in Nepal. With its exemplary track record, competent team and wider networks,

ANSAB has designed and successfully completed several related projects including similar

value chain studies of commercially important products with tangible results on the ground. It

has also provided different expert services to stakeholders working in Nepal and other

neighbouring countries.

This report consists of analyses on the global ginger market, marketing of Nepali ginger in

the domestic market and its trade to India and Bangladesh. Further, the report gas highlighted

ginger trade related constraints including non-tariff barriers, and provides recommendations

to improve current practices and increase market penetration and niche marketing in specified

products.

1.2 Objectives and Scope of the Study

The objectives of the study are to:

Prepare an overview of the global ginger market from a trade perspective on Nepalese

fresh ginger and its processed products.

Conduct an analysis of rules and regulatory systems governing trade and marketing of

ginger with the goal of sustaining and expanding exports to India and Bangladesh.

Explore the demand for Nepalese fresh ginger and processed products in India and

Bangladesh to current and potential supply with identification of major importers and

their requirements.

Identify constraints including non-tariff barriers for export and identify stakeholders

those are most likely to be affected due to these barriers.

Provide a plan for implementing necessary changes in current practices for

compliance, and outline the strategies for market penetration and niche marketing.

The study has analysed the current market situation in India and Bangladesh for Nepali

ginger and its derivatives in the following three areas.

Analysis of ginger and derivatives trade in specified markets: An analysis of the

general ginger trade performance, volume and value of trade is carried out including

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identification of key traders and trading routes to accurately and effectively provide basic

data needed to evaluate current trading practices in Nepali ginger.

Analysis of demand and preferences of Nepali ginger and its derivatives: Study

demand for ginger products and their current and potential consumers followed by a

marketing strategy.

Analysis of ginger business and non-tariff measures (SPS and TBT): An analysis of

laws, rules, regulations and technical measures governing trade, with the goal of

measuring the effects of regulations on the Nepalese industry and determining changes

required for compliance.

1.3 Approach and methodology

The study used the rapid market analysis technique to assess the markets of Nepali ginger and

its derivatives especially focusing in India and Bangladesh. The study is based on the data

and information from primary and secondary sources. The methodology applied during the

study is discussed below.

Planning, desk research and review: Desk research and review was carried out to collect

and compile the relevant secondary information on production, trade and marketing of Nepali

ginger and its derivatives. The ginger industry was analysed at the global level as well as

more specifically in India and Bangladesh. The rules and regulatory requirements and

standards required to export in India and Bangladesh were assessed. ANSAB’s practical

knowledge and experiences in the ginger sector was used. Also, the information on traders,

manufacturers and exporters was collected and compiled through trade directories and

consultations with relevant stakeholders. Before field movement, a detailed checklist and

comprehensive field plan with contact details were developed.

Conduction of Field visits: To understand the domestic markets, visits were conducted in

Jhapa, Nepalgunj and Kathmandu. During the visits, market observation, Focus Group

Discussions and consultations were carried out with the traders and limited processors visible

in Nepal's ginger industry. Similarly, the custom agents and plant quarantine officials were

consulted while collecting the export related data and information. Some of the traders,

processors and relevant government authorities in India and Bangladesh were also consulted

in the study process.

In Delhi, Azadpur Mundi was visited for fresh ginger and Khari Bauli for dry ginger. In these

markets, interactions with commission agents, wholesalers and exporters were carried out.

Similarly, Indian custom and quarantine offices in Rupaidiya were visited and consulted with

the responsible officers.

In Dhaka, the market centres namely Sham Bazaar, Kwaran Bazaar and New Market were

visited. Interactions were conducted with importers, commission agents, wholesalers and

retailers in these places. Plant Quarantine and Agriculture Marketing offices under Ministry

of Agriculture were also visited. Similarly, visits were made to Trading Corporation of

Bangladesh, Bangladesh Bureau of Statistics and Export Promotion Bureau of Bangladesh.

Meetings and consultations were organized with Nepal Ginger Producers and Traders

Association (NGPTA), Trade and Export Promotion Centre (TEPC), Vegetable Development

Directorate (VDD), Nepal Spice Crop Development Program (NSCDP), South Asia Watch

on Trade, Economics and Environment (SAWTEE) and SAMARTHA, and their activities

and experiences in the ginger sector noted.

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Analysis and report preparation: Analysis of the compiled information was also

completed, and a draft study report prepared and shared with FAO-Nepal. After receiving the

comments and feedbacks, the final report was prepared and submitted.

1.4 Limitations

This study was completed mainly based on reviews and some visits and interactions. This

report therefore, does not cover all realities of Nepal and the markets in India and

Bangladesh.

1.5 Organization of the study The reporting on the study is divided into five chapters starting with an introduction and the

methodology. The second chapter briefs about the global ginger production, trade and

Nepal’s position in the global context. The third chapter deals with the production and trade

of ginger in Nepal and illustrates some major constraints in trade. An Indian ginger industry

analysis is presented in the fourth chapter, while the fifth chapter deals with the industry in

Bangladesh. Both, the fourth and the fifth chapters also present prospects of exporting ginger

in these countries as well as perspectives from the traders. Chapter six provides a conclusion

of the study and details the ways forward for tapping ginger export opportunities.

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Box 1: About Ginger

Ginger is originally from Southern China,

but now it is cultivated in many tropical

and subtropical regions of the world. The

economically harvested part of ginger is

its rhizome (underground stem/root),

which is mostly used as a spice and as a

preserve.

The key components of ginger include:

amino acids, shoagoals, gingerols, fibre,

essential oils and minerals and is,

therefore, used commonly as an

ingredient in a variety of products for its

flavour and medicinal value. The

warming effects of ginger bring relief

during cold and flu seasons. It is also

believed to have anti-inflammatory and

anti-allergy properties. Ginger is used

medically for the treatment of nausea

from morning sickness, upset stomach,

seasickness and motion sickness.

Ginger is available in various forms.

Primary products consist of fresh and

dried ginger, and secondary products

consists of such forms as candies,

preserve, essential oils, oleoresins, ginger

paste and nutraceuticals. The brief

summary of these various forms is

presented in Annex 1.

2. Global Ginger Industry and Nepal’s Position The production and consumption of ginger is

steadily increasing worldwide. In this chapter, the

global trend of production and trade and Nepal’s

position along with required global standards are

presented.

2.1 Production

Data shows that the global ginger production is

increasing each year with an average annual

growth rate of 6.25 per cent per annum (Figure 1)

from 2003 to 2013. The production was around

1.24 million MT in 2003 and reached up to 2.14

million MT in 2013. However, the annual growth

rate of area harvested is negative (-1.50 per cent)

from 2003 to 2013 (Figure 1). The area harvested,

which was around 334,935 hectare in 2003 reached

its maximum of 415,512 hectares in 2006 and was

336,440 hectares in 2013. The production trend

also reveals a steady increase in the global average

productivity with an annual yield growth rate of

7.86 per cent from 2003 to 2013. The global yield,

which was 3.72 MT per ha in 2003, reached to 6.36

MT per ha in 2013.

India and China have remained the major leading

countries in production of ginger in recent years

(Figure 2). In 2012, these two countries' production

comprised 54 percent (India 34 per cent, China 20 per cent) of the world’s total production.

Nepal is in the third position with a share of 12 percent of the total world production.

Figure 1 Trend of area and volume of production of ginger

Source: FAOSTAT, 2014

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Other leading countries in terms of production are Nigeria, Thailand, Indonesia, Bangladesh,

Japan, Cameroon and Taiwan. The detail table of production quantities of these countries is

presented in Annex 4.

Figure 2 Trend of production quantity of top 10 ginger producing countries

Source: FAOSTAT 2014

The production of ginger in India has increased significantly in 2011 compared to 2008 with

an increase of 80 percent in quantity. Similarly, China has also increased its production by 43

percent during the same period. Nepal has increased its production steadily during this time

frame with a 58 percent increase. Japan, Cameroon and Taiwan are also experiencing an

increasing trend of ginger production during 2008-2012 (Figure 2), whereas the other major

leading producers namely Nigeria, Thailand, Indonesia and Bangladesh are experiencing

declining trends.

The trend of ginger-harvested area (2008-2012) shows India to have a total of 47 percent

(150,000 ha) of the world’s total ginger cultivation area (322,157 ha), whereas Nigeria,

China, Indonesia have 15 percent, 12 percent and 8 percent respectively. Nepal is in the 5th

position in terms of area harvested for ginger with 6 percent of the world’s total ginger

cultivation area. India, China and Nepal have significantly increased its production area by

around 44 per cent, 43 percent and 45 percent respectively in 2012 compared to 2008.

Nigeria, Indonesia, Thailand and Bangladesh have negative growth in the harvested area,

whereas Taiwan, Japan and Cameroon have the positive growth (Figure 3). The detailed table

of area of production of these countries is presented in Annex 5.

Taiw

an

Cam

ero

on

Jap

an

Ban

glad

esh

Ind

on

esia

Thai

lan

d

Nig

eria

Nep

al

Ch

ina

Ind

ia

0 100000 200000 300000 400000 500000 600000 700000 800000

20

08

20

09

20

10

20

11

20

12

Qu

anti

ty (

MT)

Year (AD)

6

Figure 3 Trend of ginger production area of top 10 countries


2.2 Trade

At the global level, ginger is mostly traded in fresh, dried and powdered forms. Other

products of ginger are preserved and turned into oils and oleoresins. Nepal mostly trades

fresh ginger but some quantity of dried ginger is also traded, mostly from the western part of

the country. In 2013, Nepal exported 35,506 MT of fresh ginger, 397 MT of dried ginger and

7 MT of powdered ginger (TEPC, 2014).

Globally, 573,942 MT of ginger is imported annually, worth USD 714 million1(ITC, 2014).

There has been an annual growth rate of 11 percent in terms of value and 8 percent in terms

of quantity from 2009 to 2013. The year 2012-2013 observed a growth rate of 35 percent in

the traded ginger value (Figure 4). In 2012, the average unit value of imported ginger was

USD 716/MT and in 2013 it increased to USD 1170/MT.

1 According to international standards, exports are valued FOB and imports are valued CIF

Taiw

an

Jap

an

Cam

ero

on

Ban

glad

esh

Thai

lan

d

Nep

al

Ind

on

esia

Ch

ina

Nig

eria

In

dia

0

50000

100000

150000 A

rea

(ha)

Year (AD)

7

Figure 4 Trend of total world import value of ginger

Source: ITC, 2014

Japan has been the top importer of ginger (mostly in fresh and preserved) with a share of 14

percent of the world’s ginger import (Table 1). Nepal has not exported ginger at a

commercial scale to Japan. In the years 2010, 2011 and 2012, Nepal exported USD 28,402,

USD 21,557 and USD 11,338 worth of ginger in dried and powder forms respectively to

Japan. No export to Japan was seen in 2013.

Table 1 Trade indicators of major importing countries of ginger worldwide

Importing

countries

Trade Indicators

Value

imported

in 2013

(USD

‘000)

Quantity

imported

in 2013

(MT)

Unit value

(USD)

Annual

growth

value

2009 to

2013 (%)

Annual

growth

quantity

2009 to

2013 (%)

Annual

growth

value

2012 to

2013 (%)

Share in

the

world

imports

(%)

The World 713796 573942 1244 11 8 35 100

Japan 100102 67148 1491 7 1 -3 14

USA 80792 57533 1404 10 9 52 11.3

Netherlands 63621 37075 1716 21 30 94 8.9

Bangladesh 46052 65478 703 3 15 98 6.5

Germany 38073 12608 3020 21 19 16 5.3

UAE 36262 31914 1136 4 8 121 5.1

Pakistan 35335 62145 569 -6 -1 60 5

Malaysia 34525 21404 1613 3 -8 81 4.8

UK 30270 19596 1545 -1 -2 54 4.2

Saudi Arabia 27120 28172 963 158 130 2 3.8 Source: ITC, 2014

Bangladesh is the fourth largest ginger importer in the world. China and India are the major

suppliers to Bangladesh. In the years: 2009, 2010, 2011 and 2012 Nepal has exported USD

8

35,036, USD 49,831, USD 5,280, and USD 4,900 worth of ginger respectively to

Bangladesh. There was no ginger exporting observed in 2013 to Bangladesh.

Table 2 Trade indicators of major exporting countries of ginger worldwide

Exporters

Trade Indicators

Value

exported

in 2013

(USD

thousand)

Quantity

exported

in 2013

(MT)

Unit value

(USD/unit)

Annual

growth

in value

from

2009 to

2013 (%)

Annual

growth in

quantity

from

2009 to

2013 (%)

Annual

growth in

value

from

2012 to

2013 (%)

Share

in the

world

exports

(%)

The World 647655 570873 1134 7 8 42 100

China 399885 380138 1052 2 6 53 61.7

Netherlands 56827 30157 1884 21 17 54 8.8

Thailand 33383 40048 834 3 -5 53 5.2

India 27008 19935 1355 26 30 -37 4.2

Nigeria 20125 12969 1552 32 25 26 3.1

Indonesia 14909 22472 663 22 9 998 2.3

Ethiopia 12553 11416 1100 11 1 -23 1.9

Lithuania 12001 5081 2362 54 60 197 1.9

Germany 9302 2419 3845 32 33 48 1.4

Peru 7994 3690 2166 36 35 98 1.2 Source: ITC, 2014

Only 8 percent of the total ginger exported is in crushed or grounded form. The annual world

export growth rate is 7 percent in value and 8 percent in terms of quantity from 2009 to 2013.

China has remained the major exporter in the trade of ginger for more than a decade. It is the

major exporting partner of top importing countries with 61.7 percent of shares in the world

exports. The Netherlands mostly re-exports the ginger. Thailand and India are the third and

the fourth largest exporters in terms of value (Table 2).

Nepal is not within the top 10 exporters in terms of value. However, in terms of quantity,

Nepal is placed in the eighth position, exporting 35,907 MT of ginger in 2013 worth USD

8.78 million (TEPC, 2014). Moreover, there is a significant informal trade of ginger to India

not formally recorded in trade statistics.

Global consumption trend

Globally, the consumption of ginger is increasing due to its human health benefits, increasing

population and peoples' changing food habits. Presently, many value added products are

developed such as ginger tea, ginger candy, ginger beer and ginger cough syrup contributing

to increased consumption.

2.3 Standards

No single global standard is found to check the quality of ginger; however, the most popular

codes in use are as set by American Spice Trade Association (ASTA) and European Spice

Association (ESA). Similarly, there are other country specific standards that are derived by

the Indian Spice Board. These standards are influenced by the standards set by the major

importing countries. There are various types of tests, which make up the range of

international standards. Some of them are cleanliness, ash level, acid insoluble ash (AIA),

9

volatile oil (V/O) determination, moisture content, microbial measures, pesticides level,

mycotoxin level and particle size. The details of these standards are presented in Annex 2.

Codex alimentarius2 standard is available as an international practice for ginger. It presents

provisions on quality, size, tolerance and presentation. It also provides standards for marking

or labelling, and determining contaminants and hygiene. Details are presented in Annex 3.

The International Federation of Organic Agriculture Movement (IFOAM) has established

organic production, processing and trading standards, and has tried to implement a worldwide

certification system. However, countries have varying standards and certification bodies such

as Japanese Agriculture Standards (JAS) of Japan, EU organic standards and US organic

standards. Details of organic standards are presented in Annex 2.

2 The Codex Alimentarius is a collection of internationally recognized standards, codes of practice, guidelines and other

recommendations relating to foods, food production and food safety. Its name is derived from the Codex Alimentarius

Austriacus.

10

3. Ginger Industry in Nepal This chapter provides information on the production and trade status of ginger in Nepal. The

chapter also discusses informal trade and constraints due to non-tariff barriers.

3.1 Production Ginger is one of the major spice crops traditionally grown in the middle mountain areas of

Nepal for the generation of cash incomes to rural communities. It plays an important role in

supporting rural livelihoods, including poor, marginal and disadvantaged communities. It is

estimated that over 66,000 families in Nepal have been cultivating ginger with a bigger

impact on smallholder farmers(NEAT, 2011). It has proved to be more lucrative and

beneficial than cereal crops.

Ginger is one of the most cultivated spice crops in Nepal, with around 19,376 ha of

cultivation area and 235,033 MT of production in 2012/13(NSCDP, 2014). In Nepal, ginger

is mostly grown in middle-mountainous areas throughout the country.

The production trend reveals an increasing area and quantity of ginger in the last five years

(from 2008 to 2012). Figure 5 reveals that ginger production has increased by 1.6 times in

2012 compared to 2008. During these years, ginger production had an annual average growth

rate of 12 percent (FAO, 2014).

Figure 5 Production trend of ginger in Nepal


Production comes mainly from the Eastern Development Region of the country with 83,488

MT (35.5 per cent) followed by the Western Development Region with 57,260 MT (24.4 per

cent) in 2012/13. Similarly, the Mid-western Development Region, Central Development

Region and Far-western Development Regions have produced 39,346 (16.7%), 29,345

(12.5%) and 25,287 (10.8%) MT of the total ginger production in 2012/13. The productivity

of the Far-Western Development Region is the highest with 14.29 MT of production per

hectare. The major ginger producing districts in order of production quantity are: Ilam,

Salyan, Palpa, Nawalparasi, Morang, Doti, Kailali, Tanahu, Surkhet, Sindhupalchok,

Syangja, Makwanpur, Sindhuli and Kaski (NSCDP, 2014).

There are two major types of ginger grown in Nepal, locally known as nashe (rich in fibre)

and boshe (less fibre and thick rhizomes). The boshe varieties are mostly grown in and

11

around Makwanpur and Salyan areas whereas nashe is most common in other parts. Nuwakot

is another variety grown in Nepal known for being low in fibre content and proper rhizome

size. In Pachthar and Tehrathum, there is another variety, known as bhainse, which has big

rhizomes. According to traders, the bhainse variety is usually exported to Delhi. In

Kathmandu markets, the Nuwakot and Makwanpur varieties are more common. Due to less

fibre content, the boshe varieties are priced higher than nashe. Fibre content of ginger is said

to depend on soil type and climatic conditions; therefore, boshe varieties from one location,

when grown in other locations, can produce highly fibrous rhizome (HVAP, 2011).

The ginger cultivation in Nepal is done mostly in traditional ways with very few external

inputs and increased use of labour. Farmyard manure and compost are mostly used rather

than fertilizers. Farmers typically use locally available seed materials. Mostly, seeds are

produced by farmers themselves, and kept for the next season’s plantation. Farmers keep 20

to 25 per cent of their production to use as seeds for the next growing season. New growers

purchase seeds from neighbouring farmers or local markets. Lower productivity has been

reported from out of farm purchased seeds and that grown by new cultivators. Ginger farmers

in the mountains mostly preserved ginger seed from their last season crop, and rarely used

pesticides on ginger. It is becoming more common for seeds to be treated with fungicides

(and in some places with bio-pesticides). The sequence of agricultural activities usually

includes: land preparation, plantation, FYM/compost application, mulch collection and

placement, timely weeding and harvesting. Mostly local materials and household labourers

are used for all of these activities. Land is generally ploughed with bullocks or dug by

labourers. Post-harvest activities are limited to separation of rhizomes from stem and soil

removal from the rhizome. There is no practice of washing, sorting and grading of rhizomes.

The ginger is sent to markets ungraded and packaged in gunny bags.

3.2 Trade

A proportion of the total ginger produced in Nepal is consumed locally, but a majority of

domestic ginger is exported. Most commonly, local collectors visit the farmers to collect the

ginger or alternatively, farmers take their produce up to road-head traders. The road-head

traders are mostly located at places where transportation is available, and where the traders

act as consolidation points. They supply the goods to district traders, who in turn supply to

the exporters or national traders. The exporters mostly sell their goods in India via

commission agents, who take 6-7 per cent commission of the sales. Some exporters also sell

directly to importers (Figure 6). Usually following marketing channel is observed in ginger

sector of Nepal.

12

Figure 6 Marketing channel of ginger in Nepal

Source: ANSAB Nepal Field Study, 2014

National traders or exporters bear the cost of transportation to market centres, as well as

various other taxes and load/unload fees. Some exporters also have agents bringing goods

from farmers/local collectors/road head traders to their places. Exporters usually receive

ginger near borders, where they complete processes due to quarantine and custom clearances

and transfer it from Nepali trucks to Indian trucks (known as “palti”) for further transport

beyond border.

Domestic trade

In rural areas, most of the farmers grow ginger on their own land for domestic use (seed and

consumption) and sale in market. Major trading of ginger is done in urban areas, where

ginger is brought from various production pockets. Fresh ginger is the most traded product in

domestic markets.

Kathmandu is one of the major domestic markets for ginger. Most of the ginger in

Kathmandu is distributed through Kalimati Vegetable Wholesale Market. Nuwakot, Dhading

and Makawanpur are the major suppliers of ginger in Kathmandu. Other major domestic

markets include Birtamod/Dhulabari, Biratnagar, Dharan, Butwal/Bhairahawa, Tulsipur and

Nepalgunj. The major domestic markets for ginger by development regions are as listed in

Table 3. During off seasons, there is some ginger import from China to the domestic markets.

Table 3 List of major market centres in five Development Regions of Nepal

SN Development region Major markets

1 Eastern Dhulabari, Dharan, Biratnagar

2 Central Hetauda, Birgunj, Kathmandu

3 Western Butwal, Bhairawa

4 Mid-western Tulsipur, Nepalgunj

5 Far-western Dhangadhi, Mahendranagar Source: NEAT, 2011

Farmers

Collectors/Road-

head traders

District

traders

Exporters/

Processors

Commission

Agents/Importers Indian Wholesalers

Indian Retailers

Local Wholesaler

Local Retailer

Wholesalers/Importers

(Abroad)

85% 15% 10% 99%

1% 50% 40%

13

Price trend

The producer price trend of ginger reveals high fluctuations (Figure 7). From 2003 to 2012,

the price had reached its highest in 2005 and then declined until 2009. Afterwards, the price

increased until 2011 with a slight decrease in 2012.

Figure 7 Producer price trend of Nepali ginger in USD/MT


During November to January (harvesting season) the price of ginger is at its lowest, while

from April to July the price is higher (Figure 8). The Figure shows that the price of ginger in

Kathmandu is higher than that in Nepalgunj. It is important to note that the price in

Kathmandu represents a local/domestic supply price whereas prices in Nepalgunj represents

export prices

Figure 8 Trend of wholesale price of fresh and dried ginger in Kathmandu and Nepalgunj

Source: ANSAB, 2014

0

100

200

300

400

500

600

700

800

900

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

USD

/MT

Years (AD)

0

50

100

150

200

250

300

350

400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

NP

R/k

g

Kathmandu (fresh) Nepalgunj (fresh) Nepalgunj (dried)

14

Export

Ginger is one of the prioritized export commodities for the Nepal Trade Integration Strategy

(NTIS, 2010). Nepal exported 35,907 MT of ginger in 2013, valuing USD 8.78 million

(TEPC, 2014). Nepal mostly exports ginger in fresh forms and partly in traditionally dried

forms, known as Sutho.

India has remained the major importing partner with 99% of the total ginger exported in

2013. The export trend (Figure 9) shows high fluctuation in the past five years with the

highest export recorded in the year 2012 and lowest in 2011.

Figure 9 Export volume and value trend of ginger from Nepal

Source: TEPC, 2014

With a majority of ginger being exported to India, which itself is the world’s largest producer

and leading exporter, the demand of India highly alters not only the supply of ginger from

Nepal but also the prices. It is noted that during the year 2012, India had a low production

due to reduced rainfall resulting in less yield from the new crop in Karnataka. In 2011

however, the price of Indian ginger had sharply decreased (as low as INR 7/kg due to high

supply from Karnataka)3 thus reducing the demand for ginger from Nepal.

The export mainly consists of fresh forms with a 96 percent share in total ginger exports. The

export of dried ginger makes up 4 percent of the total export, and 0.02 percent of exported

ginger is in powdered form.

3 Financial Express, 2013

2009 2010 2011 2012 2013

Qty (MT) 34,266 18,262 17,215 53,014 35,907

Value (USD '000) 6,153 4,581 4,887 12,452 8,798

-

10,000

20,000

30,000

40,000

50,000

60,000

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

MT

USD

'00

0

Year (AD)

Qty (MT) Value (USD '000)

15

Figure 10 Share of various forms of ginger in total ginger export from Nepal in 2013

Source: TEPC, 2014

Figure 11 represents exports from Mechi customs as recorded by NGPTA during a major

export season of ginger from Oct/Nov to Dec/Jan. As there are no cold storage practices

available for ginger in the country, its export during offseason is difficult. However, Jun/Jul

to Aug/Sep is also an important season for ginger export in eastern Nepal due to a practice of

harvesting mother rhizome (brunee) from standing crop during these months. The practice is

not usual in the western part of Nepal.

Figure 11 Export quantity of ginger from Kakarbhitta customs

Source: NGPTA, 2014

Ginger in eastern parts of the country is mostly exported via Kakarbhitta and Birgunj borders

whereas, that in western parts is exported via Nepalgunj and Bhairahawa borders. Only the

western parts of Nepal export dry ginger. There is no practice of making dry ginger in eastern

parts of Nepal. The following figure presents the export of ginger from various custom

points.

8446, 96%

349, 4% 2, 0.02%

Fresh (in USD '000)

Dried (in USD '000)

Powder (in USD '000)

0

100

200

300

400

500

600

700

Tru

cklo

ad

2011./12 2012/13 2013/14

16

Figure 12 Ginger exports from major customs point

Source: Department of Custom, 2014

The highest export was seen from Birgunj customs during 2012/13. From the interactions

with traders, it was found that due to low production rates in India, there was a high demand

for ginger in that year. It was also reported that some traders re-exported Chinese ginger

through this custom. In 2011, the Mechi custom had sent more ginger than other customs.

The export volume and value of ginger from Biratnagar and Nepalgunj customs have

comparatively remained lower. Traders from western region mention that it is rather easy to

export ginger from Bhairawa custom due to availability of extension centre of Central Food

Laboratory of India at Sonauli, border, for conducting test or analysis of sample food.

Non-tariff barriers and informal trade

When considering domestic consumption and general trade practices, total volume of exports

is estimated to be more than double of the official figure, due to the informal trade practices

across the porous Indo-Nepal border. The informal trade has been encouraged due to non-

tariff barriers such as difficulties and added costs in obtaining the import permit and a

certificate of test or analysis of food sample issued by regional food labs in India as per

provision of PFA4 Act and Rule, value limitations in clearing the consignments and both side

traders' attitude of reducing associated trading costs. According to traders in export points,

Indian import permits are usually issued to Indian import agents, thus incurring some added

expenses towards the agents. Similarly, due to test or analysis requirements of sample food

that need to be conducted in the Central Food Laboratory situated in Kolkata or Ghaziabad,

the duration for holding the consignment in the custom can be as long as 5-7 days or even

more. Product freshness is threatened with such a long stay resulting in negative

consequences with the quality of ginger as well as added expenses associated with storage.

Similarly, in order to export ginger, Indian plant quarantines and custom authorities at the

custom points are only allowed to clear consignment valued at maximum NPR 160,000 (USD

1623). A higher valued consignment can be cleared with the countersign from an Assistant

Commissioner stationed in: Siliguri in the case of Panitanki custom point (Kakarbhitta) and

4 Prevention of Food Adulteration Act, India

0

100

200

300

400

500

600

700

800

0

5000

10000

15000

20000

25000

Bhairawa Mechi Birgunj Biratnagar Nepalgunj

NP

R (

in m

illio

n)

MT

2010/11 (MT) 2011/12 (MT) 2012/13 (MT)

2010/11 (NPR in million) 2011/12 (NPR in million) 2012/13 (NPR in million)

17

Lucknow in the case of Rupediya custom point (Nepalgunj) resulting in higher costs for

documentation due to distance and time factors.

Because of such technical problems, the values recorded at custom offices do not reflect the

actual prices. For instance, the price of ginger recorded at Kakarbhitta custom remained the

same for the last five years despite a huge fluctuation in ginger price. The traders mentioned

that due to technical difficulties in getting permission for a consignment valued above the

ceiling amount, reduced size and price of consignments were declared to the authorities.

It is an open secret that some ginger being exported is unwashed that possibly contains soil

materials. This is important to note due to the fact that Indian quarantine rules do not allow

ginger imports with soil. Yet the rule is not effective to Nepali ginger. Some export of

unwashed ginger from Nepal has sustained as a great barrier in fetching high prices for

Nepali ginger as the country has no large scale washing facility, and there is no certainty that

India in future be allowing ginger in soil. One example of Indian ban on import of Nepali

ginger occurred for a few months in 2004 citing the reason of Nepali ginger being

contaminated with soil. This caused an approximate loss of NPR 1.6 billion (Rijal, 2011).

Owing to overall long processes and difficulties in documentation, ginger exports are

presently being conducted in the name of a few registered companies (3 to 5) at every custom

point. The traders export ginger through these companies. Similarly, no formal banking

channel is used in transactions while exporting ginger to India. The Indian importing parties

usually paid Nepalese ginger exporters in cash with Indian currency or as barter through

exports of other goods to Nepal. Multi-location based local government taxation by VDCs,

municipalities, DDCs and informal fees collected by security personnel and local interest

groups along transportation are also issues of concerns that escalated cost in ginger trade.

There is necessity of paying the informal fees via export/ import/ custom clearance agents

and service cost to the agents to clear the consignment, which further increases the cost of

consignment and is extra burden for the exporters.

Import

Though Nepal is one of the major producers and exporters of ginger, it needs to import ginger

especially during offseason. The import data show sharply increasing trend of ginger imports

in terms of volume and value in year 2012 and 2013.

Figure 13 Ginger import trends in Nepal

Source: TEPC, 2014

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

-

1,000

2,000

3,000

4,000

5,000

6,000

2009 2010 2011 2012 2013

MT

USD

'00

0

Qty (tonnes) Value (USD '000)

18

China is the leading supplier of ginger to Nepal. In 2013, import from China to the total

import to Nepal was 71 percent. Similarly, India is the second major partner sharing for 17

percent of the total ginger import in Nepal. Other countries where ginger is imported from are

Thailand, Ethiopia, Hongkong and Canada.

In total, about 97 per cent of ginger imported is in fresh form, whereas 3 per cent is in dried

and powdered form. The processed ginger is mainly coming from India.

Export and Import comparison When compared, the value of ginger import to Nepal is around 45-60 percent of the total

export value. Flaws exist in official export data because of under valuation and reduced

declaration of consignment volume, which was discussed earlier.

Figure 14 Export and import value comparison of ginger in Nepal

Source: TEPC, 2014

Present Processing capacity of Nepal The present ginger processing capacity of Nepal is very limited. Only few processing plants

have been established, and very little quantity of ginger is being processed. The list of ginger

processing infrastructure in Nepal is presented in Table 4 below.

Table 4 Ginger processing capacities and types of products in various districts of Nepal

Place Processing capacity/Day Remarks

Surkhet 8.2 MT Process organic ginger

Kailali 3 MT Washed ginger; run by a cooperative;

Kapilvastu 3-5 MT Washed ginger, slice, powder and ginger paste;

Run by Annapurna Organic

Godavari Aroma 2 MT Washed ginger and ginger oil

Jhapa (GCP) 72 MT Washed ginger; currently under construction.

Jhapa Very low amount Washed ginger; currently closed

Phikkal, Ilam Approx. 1 MT Ginger slice and powder; still not operated; run

by a cooperative. Source: SAMARTH, 2014 and ANSAB Nepal Field Study, 2014

The current processing capacity is not enough and further development of such infrastructure

is required for the production of quality ginger.

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013

Year (AD)

Import Value (USD)

Export Value (USD)

19

4. Ginger Industry in India India is the largest producer and consumer of ginger in the world. It is one of the major

exporters of ginger and its derivatives. It also imports a substantial amount of ginger from

other countries including Nepal. This chapter provides information on the production and

trade status of ginger in India, and rules and regulation there governing trade and marketing

of ginger and its derivative products. Also, this chapter provides an analysis on status and

prospects of Nepali ginger in Indian markets.

4.1 Production Time series data of ginger production in India from 2007/08 to 2014/15 reveal a fluctuating

trend with a decline in recent years. In 2012/13, ginger production (682,630 MT) declined by

26 percent (See Figure 15) compared to the preceding year 2011/12 (924,417 MT). It was the

same year, when there was a short supply of ginger in India and the price reached its peak of

INR 50 (USD 0.81) per kg for fresh ginger, whereas the year before the price was INR 7

(USD 0.11) per kg (Ravi, 2012). After the decrease in 2012/13, the production has remained

almost constant.

Figure 15 Trend of production and area of ginger in India

eestimated,

Source: Spice Board of India, 2014 and *National Horticulture Board, India, 2015

Ginger is produced in almost all of the states in India. Recently, the major states producing

ginger are Karnataka, Orissa, Assam, Gujrat, Meghalaya and Arunachal Pradesh. Most of the

time Karnataka has remained the largest ginger producing state since 2007-08; however, its

production declined substantially during 2011-12 resulting Orissa to be the top producing

state (Table 5).

In Karnataka, ginger is grown in about 29,000 hectares spread over Hassan, Coorg, Shimoga,

Chickmagalur, Bidar and Mysore districts. It is cultivated as a main crop as well as an

intercrop in plantations. Kerala used to be the top producer prior to 2006. Wayanad and the

surrounding areas in Kerala that accounted for the bulk of ginger production during the

nineties have seen ginger farming coming down rapidly due to labour shortages and higher

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13*

2013/14*

2014/15 e

Production Quantity 775439 831067 708256 913890 924417 682630 655060 655000

Production Area 123708 143861 142089 170957 155063 136250 132620 133000

0

20

40

60

80

100

120

140

160

180

0 100 200 300 400 500 600 700 800 900

1000

Ha

in '0

00

MT

in '0

00

Year (AD)

Production Quantity Production Area

20

input costs. Enterprising farmers from Kerala moved out to nearby places in Karnataka in

search of land and cheap labour(Gracy, 2013).

Cochin Ginger and Calicut Ginger from Kerala are popular in the world market for their

quality and speciality. Both ginger have volatile oil contents in the range of 1.9 to 2.2 per cent

and are characterized by a lemon-like aroma and flavour (which is more pronounced in

Calicut spice), low fibre content and high moisture content thereby commanding a premium

price.

Table 5 Trend of ginger production in various Indian states

Name of State Production in MT / Year

2007-08 2008-09 2009-10 2010-11 2011-12

Orissa 32720 33370 117720 126530 134980

Assam 107078 103915 107893 112548 121370

Karnataka 194229 273253 135031 168310 93486

Gujarat 48742 49504 47694 69581 70646

Meghalaya 52800 50256 54009 52922 54719

Arunachal Pradesh 47407 47181 49663 52304 54000

Uttaranchal 28782 31288 40418 41944 44011

Kerala 31726 30809 28603 33197 37130

Mizoram 56998 34290 31000 31000 34488

West Bengal 23137 23832 24128 24606 24854

Andhra Pradesh 14070 11684 16674 23054 21883

Sikkim 37743 40866 35970 35970 NA

Total incl. others 775439 831067 708256 913890 924417 Source: Spice board of India, 2014

Figure 16 Comparison of India’s production and import from Nepal in various years

Source: Spice Board of India and Department of Commerce, India 2014

The production of ginger in most of the states except Karnataka and Orissa is almost

constant. The production in Karnataka is highly fluctuating, and it can be analysed to have

effects in Nepal’s export price, as the produce from Karnataka is one of the major

competitors of Nepali ginger. The production in Orissa is also increasing tremendously in

recent years. The ginger from Orissa is mostly distributed to nearby markets of Orissa,

Andhra Pradesh, Bihar and Chhatisgarh. It is seen that the increasing trend of ginger

41,729 35,939 36,644 19,887 22,547 60,378

775,439 831,067

708,256

913,890 924,417

682,630

0

200,000

400,000

600,000

800,000

1,000,000

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

MT

Year

Import from Nepal Indian production

21

production in India has an inverse relationship with India's ginger import from Nepal (Figure

16).

Figure 16 compares India’s ginger production with its ginger import from Nepal, which is

very small. In the year 2012/13, the share of imports from Nepal to Indian production was 9

percent, and in the preceding year it was just 2 percent.

Out of the total Indian production, about 30 percent is converted into dry ginger, while 50

percent is consumed as green ginger and the remaining 20 percent used as seed materials. Dry

ginger is produced mainly in Kerala, a major share of which is exported(Abubaker, 2011).

The major types of ginger cultivars grown in various states of India are listed below.

Table 6 Ginger cultivars grown in different states/union territory

State Cultivars

Andhra Pradesh Local types viz. Medak and Tuni

Arunachal Pradesh Shillong

Bihar Desi and Dorabhanya

Gujarat Local types named after the localities

Haryana and Punjab Local types named after the localities

Himachal Pradesh Himachal No. 1, SG 666 (Dhariga local), SG 645 and Narag

Jammu and Kashmir Himachal No. 1

Karnataka Waynad, Manathodi, Narasapatam, Thaiguppan and Karakkal

Kerala Kuruppampadi, Waynad local, Valluvanad, Maran, Nadia,

Maran/Lodi, Ernad, Thodupuzha, Rio-de-Janeiro, Jamaica

Madhya Pradesh Local ginger types found in Tikkamgarh, Chindwara and Baster

districts

Maharashtra Local types

Manipur Shing type, Thingpuri and Shingtam

Meghalaya Nadia, Poona, Rio-de-Janeiro, Waynad, Thingpuri and Maran

Mizoram Thingpuri, Maran and Rio-de-Janeiro

Nagaland Rio-de-Janeiro

Orissa Kuruppampadi, Waynad types, Local types viz., Kuduli, Laxipur,

Turia Junagarh, Raikia, Suprapha and Suruchi

Sikkim Gurubathane, Bhaisey, Nadia, Rio-de-Janeiro and Thingpuri

Tamil Nadu Rio-de-Janeiro, Maran, Nadia

Tripura Himachal No. 1, Local types

Uttar Pradesh Local types named after the localities

West Bengal Gurubathan, Smbuk-A, Turuksadan, Malli, Rio-de-Janeiro, Thingpuri,

Maran, Tura and Bombay Desi Source: National Horticulture Board, India, 2011

Some of the prominent indigenous cultivars are Maran, Kuruppampadi, Ernad, Waynad,

Himachal and Nadia. Exotic cultivars such as Rio-de-Janeiro have also become very popular

among cultivators(ICAR, 2014). The improved varieties of ginger and their salient features

are given in Annex 6.

4.2 Trade

Domestic market

In India, the demand for fresh ginger is high as it is mainly consumed in fresh form and used

in vegetable dishes. Major ginger markets in India are Mumbai, Chennai, Hyderabad, Delhi

and Bangalore.

22

Figure 17 Trend of yearly total market arrival of ginger in India

Source: National Horticulture Board, India, 2015

Figure 18 Total market arrivals of ginger in various major cities in months of 2014


Time series data on total market arrival of ginger from 2004 to 2014 in various markets of

India reveal an increasing trend of traded volume. The market arrivals of ginger in 2011 and

2012 were high with increase in production, when the price decreased substantially.

However, in the following year (2013), there was sharp fall in market arrival of ginger as

many farmers withdrew from ginger cultivation and the price went up.

Delhi, Kolkotta, Lucknow and Patna are major markets where Nepali ginger is traded. Total

market arrivals of ginger in these market centres are presented in Figure 18.

The figure reveals that the Delhi market has the highest transaction for ginger among these

cities; however, the trade in Delhi fell substantially during the offseason (i.e. May-Aug).

Major sources of fresh ginger in Delhi are Karnataka, Sikkim/Darjeeling, Assam, Himachal

and Nepal. Karnataka used to trade 3,000 MT of ginger per month for the 8 months of high

arrivals. Delhi imports 600-750 MT per day from different parts of India including Nepal.

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MT

Year (AD)


DELHI 9396 7231 5519 3051 2729 2110 2075 3002 6890 8266 10876 13583

KOLKATA 2979 2610 2728 2306 2941 3374 3994 3804 3750 3121 2962 4080

LUCKNOW 264 271 283 154 115 106 121 248 442 357 432 547

PATNA 450 382 312 232 253 260 274 335 347 350 530 542

0

2000

4000

6000

8000

10000

12000

14000

16000

MT

23

The Kolkata market shows the opposite trend with more transactions during June-August. It

might be due to the type of harvesting practices of mother rhizome during the period in

eastern part of Nepal and west Bengal.

Dry ginger is mainly sourced in India from its own production in Karnataka (Sagar), Kerala

and Assam, and some quantities from Nigeria and Nepal. The market share in the case of dry

ginger in Delhi is estimated to be 60 percent Indian, 30 per cent Nigerian, 5 percent Nepali

and 5 percent others.

The ginger imported from Nepal goes mainly for domestic consumption (Parthasarathy,

2011). Fresh ginger from eastern regions of Nepal goes mainly to Kolkata and Siliguri, and

comparatively a small quantity to Delhi, Amritsar, and Lucknow via Naxalbari (an Indian

city near Kakarbhitta border, where the ginger is washed and cleaned). According to traders,

out of 1800 truckloads of ginger exported in 2013/14 from Mechi custom, only 300 trucks

arrived in Delhi and surrounding areas. Fresh ginger from western regions of Nepal mostly

goes to Gorakhpur, Lucknow, Kanpur, Delhi and surrounding areas.

Price trend

Ginger prices are very unstable in India. Figure 19 shows fluctuating trends of ginger prices

from 2004 to 2014. In the years 2012 onward, ginger prices have increased substantially in

response to supply situations in the market and the production status.

Figure 19 Trend of yearly average wholesale price of ginger in India


The Figure 20 reveals the national average wholesale price and the arrival of ginger in the

market in various months of 2014. The price is highest during offseason when there is the

lowest arrival of ginger, and the lowest during harvesting season.

Figure 20 Average wholesale price and total market arrival of ginger in various months of 2014

0

1000

2000

3000

4000

5000

6000

7000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

INR

/qu

inta

l

Years (AD)

24


Export

India itself is one of the major exporting countries, with its share in the total global ginger

export valued at 4.2 percent. The export trend is fluctuating with a slight decline from 2005 to

2009 and thereafter a sharp rise during 2010/11 and 2011/12 (Figure 21) in response to

production (Table 5). The export declined substantially in 2012/13 due to overall low

production that year.

Figure 21 Trend of ginger export from India

Source: Department of Commerce, Government of India, 2014

Major export products include: fresh, dry, and powdered ginger, which is based on quantity.

However, dried ginger had the highest export value followed by powder and oleoresins

(Figure 22). Similarly, ginger oil had a 5 percent share in the total ginger export. In ginger oil

and oleoresin trade, India dominated, holding 50 percent of the world’s trade(Abubaker,

2011). Thus, nearly 90 per cent of the total export value of ginger from India is in processed

form, which clearly indicates the high value addition being taken place in India. Indian spices

are also famous throughout the world.

Figure 22 Export of different forms of ginger from India in 2012/13

-

2,000

4,000

6,000

8,000

10,000

0

5000

10000

15000

20000

25000

30000

35000


INR

/Qu

inta

l

MT

Total arrival Avg. wholesale price

-

10,000

20,000

30,000

40,000

50,000

60,000

In Tonnes

In USD (in 000)

25


The fresh ginger is mostly exported to Bangladesh. Around 88% of total fresh ginger

exported from India in 2012/13 arrived in Bangladesh. India, (especially Delhi) used to

export ginger to Pakistan. However, in recent years Pakistan is importing ginger from

Thailand. Dried ginger mostly goes to Spain, USA, Morocco and Arabian countries. Two per

cent of dried ginger was exported to Nepal in 2012/13. Powder ginger is mostly exported to

USA, UK, South Africa, Australia and other European countries. Similarly, the ginger oil and

oleoresins are also mostly exported to developed countries including USA, UK, South Africa,

Japan, Germany, Netherlands, China, Australia and South Korea. The major countries of

ginger export from India in 2011/12 and 2012/13 are provided in Table 7.

Table 7 Major country of ginger export by India in 2011/12 and 2012/13

S. N. Country Values in USD Million Quantity in MT

2011-12 2012-13 % Growth 2011-12 2012-13 % Growth

1 Bangladesh 4.97 4.75 -4.41 13,062.24 8,753.86 -32.98 2 USA 8.24 5.47 -33.63 4,303.35 2,730.76 -36.54 3 Spain 2.2 4.07 84.75 808.08 2,075.61 156.86 4 Morocco 3.58 1.87 -47.8 1,361.33 1,051.05 -22.79 5 UK 2.33 1.86 -20.14 733.64 856.86 16.8 6 Saudi Arab 4.22 1.47 -65.21 1,675.60 784.14 -53.2 7 Egypt 1.76 1.3 -26.02 728.02 770.23 5.8 8 Vietnam 0.96 0.99 3.52 376.34 610.01 62.09 9 Iran 0.29 0.79 169.34 150.65 607.4 303.2 10 UAE 5.29 0.84 -84.06 2,249.78 552.19 -75.46

Total including

others 55.74 36.18 -35.09 Source: Department of Commerce, Government of India, 2014

Import

Despite being the top producing country of ginger worldwide, India also imports a fair

amount of ginger. The import is done mostly to fulfil domestic consumption, and is high

whenever there is a fall in its domestic production. Figure 23 shows the import trend of

ginger by India from 2003/4 to 2012/13.

5.14

12.36

3.11

8.3 7.27

8.32

2.49

Fresh Dried unbleached

Dried bleached

Powder Ginger nes incl dried

Oleoresins Others

0

2

4

6

8

10

12

14

Forms of ginger

Exp

ort

val

ue

(U

SD in

mill

ion

)

26

Figure 23 Import trend of ginger by India from 2003/04 to 2012/13


Imports peaked during 2012/13, when there was a decrease in production, whereas imports

declined in the year 2010/11 and 2011/12 due to increase in production. Imports therefore

have a direct correlation with domestic production. Hence Nepal’s export to India, which is

its major export destination, is also determined by India’s domestic production.

In terms of quantity more than 90 percent of India’s ginger import is in fresh form. In terms

of value, the major imported forms of ginger are: fresh and dried (Figure 24).

Figure 24 Import value of ginger in India in 2012-13


Nepal is the major importing partner of India. Nepal occupied 71 percent of the total ginger

import by India in the year 2012/13. Another major country of import is Nigeria. Chinese

ginger is not as commonly imported to India (Table 8).

Table 8 Major importing partner countries of India

S.N. Country Values in USD Million Quantity in MT

-

5,000

10,000

15,000

20,000

25,000

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

In U

SD '0

00

MT

Import quantity Import value

13.27

5.07

0.75 0.02

1.28 0.13 0.11 0

0

2

4

6

8

10

12

14

USD

in m

illio

n

27

2011-12 2012-13 % Growth 2011-12 2012-13 % Growth

1 Nepal 5.95 14.51 143.84 22,546.83 60,377.65 167.79

2 Nigeria 4.9 4.18 -14.59 1,615.47 2,781.87 72.2

3 China 1.24 0.5 -59.97 305.5 187 -38.79

4 Djibouti 0.46 348

5 Ethiopia 0.98 0.29 -70.79 274.95 209 -23.99

6 Myanmar 0.73 0.23 -68.82 305.34 186 -39.08

7 Japan 0.12 19.99

8 Tanzania 0.09 22

9 New Zealand 0.01 28

10 Thailand 0.01 1.27

Total 14.3 20.4 42.71 25,048.09 64,160.78 27.626 Source: Department of Commerce, Government of India, 2014

Nepal plays a significant role in ginger imported by India; where almost all the fresh ginger is

imported from Nepal. Whereas, it only occupies nearly 50% share in dried ginger import.

Other dried ginger is mostly from Nigeria.

Figure 25 shows the import quantity of ginger from Nepal to India, which is directly

proportional to the total ginger import trends of India. The import of ginger from Nepal is

highly fluctuating. As 99% of Nepal’s ginger is exported to India, demand fluctuation in

India for ginger has directly impacted the ginger market and price in Nepal.

Figure 25 Trend of ginger import in India from Nepal


4.3 Rules and regulation for importation in India Food and agricultural products imported in India are governed by various laws under the

jurisdiction of multiple authorities of the government. The importing of ginger (especially

fresh ginger) should undergo several rules and regulations before the goods can reach

customers. Brief outlines of such rules and regulations are provided below.

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

MT

Year (AD)

28

Plant Quarantine

Plant import regulations are governed by the Plant Quarantine (Regulation of Import into

India) Order 2003, under the Destructive Insects and Pests Act, 1914. The Order was

published on 18 November 2003 with the purpose of prohibiting and regulating the imports

of agricultural articles into India. The order was emplaced on 1 January 2004, onward. The

implementing agency was the Directorate of Plant Protection, Quarantine and Storage under

the Ministry of Agriculture, Department of Agriculture and Cooperation.

The import consignments of plant and plant products are inspected by the Plant Quarantine

Authorities to verify the absence of infestation of quarantined pests and disease before being

cleared for release by Customs. Import permits are required for importing seeds/plant

materials for consumption, and are based on the applications completed by the importers. The

permit issuing authority is the Department of Agriculture and Cooperation under the Ministry

of Agriculture, Government of India.

Laws, rules and regulations on food safety

Food Safety and Standards Authority of India (FSSAI) governs laws, rules and regulations in

food safety. The Food Safety and Standards Act 2006, which was fully implemented in 2013,

is the parent law related to food safety and standards in India.

The regulation governs packaging and labelling, food additives, product standards, licensing

and registration of food businesses and maximum residue level of contaminants. The

Regulation stipulates, “...all food business operators, food processors, manufacturers,

exporters or importers shall ensure that the food s/he handles meets all the standards under

the FSSAI’s Food Safety and Standards (FSS) Regulation 2011.” All domestic food operators

including importers are required to have an FSSAI license to conduct business in India.

FSSAI does not require licensing of foreign companies to export food products to India

(FAS, 2013).

FSSAI has set maximum residue levels (MRLs) for pesticides, toxins and other contaminants.

MRLs set by Codex Alimentarius may be accepted for imported foodstuffs, if the subject

pesticides are not on the approved or banned lists of pesticides.

Labelling

The Food Safety and Standards Authority of India requires the following labelling standards:

- Product information must be printed on a label securely affixed to the package or printed

on the package itself,

- The label must be printed in English or Hindi (Devanagari script) languages.

- No false or misleading or deceptive representation shall be made which can create an

erroneous impression of the pre-packaged food in any respect, and

- Content of the label shall be clear, prominent, indelible, and readily legible by the

consumer.

Imported bulk food items sold in loose or unpackaged form must have an accompanying

certificate that specifies country of origin. However, there is currently no requirement to label

imported loose or unbranded products at the retail point of sale. Raw agricultural

commodities, spice mixes, condiments, non-nutritive products, alcoholic beverages, fruits and

vegetables, processed pre-packaged vegetables and fruits are exempted from nutritional

labelling requirements(FAS, 2013).

29

Packaging

The fruits and vegetable products can be packed in aseptic and flexible packaging material

having good grade quality conforming to the standards laid down by Bureau of Indian

Standards (BIS). All weights or measures are to be reported in metric units. The use of

materials such as polyvinyl chloride (PVC) is not allowed for packaging in most cities, due to

environmental concerns and waste disposal problems.

4.4 Status and prospects of Nepali ginger in Indian markets India has remained a traditional trading partner of Nepal. Due to an open border and since its

long socio-cultural intimacy and bilateral trade agreements, Nepal's trading with India is

easier than with other countries.

Nepali ginger as perceived by traders

Nepali ginger is mostly sold in Uttar Pradesh, Bihar West Bengal and Delhi, and partly in

Rajasthan and Indore as Marwari community preferred it.

However, Nepali ginger does not have as good of a reputation

and image as compared to Indian cultivars. Most of Indian

traders do not prefer Nepali ginger due to its poorer and

inconsistent quality. Nepali ginger according to the traders is

generally ungraded, consisting of smaller pieces and thus

receiving low prices. Secondly, the traders did not prefer

Nepali ginger despite its good flavour for its high fibre content

and brown colour (esp. dry finger), which is not considered

ideal for powdered ginger. Brown Nepali ginger is also not

suitable for pharmaceutical preparation.

There is also a lack of trust between Indian and Nepali traders. According to traders from

Box 2: Export procedure to India

The Indian Plant Quarantine issues the import permit mentioning quantity of ginger to be

imported. The import permit has validity of six months from the date of issue.

The exporter prepares consignment within approved limit of quantity and time.

The exporter prepares necessary documents and presents it to Nepalese Plant Quarantine.

The documents required are filled form with stamp, import permit, invoice by exporter

and certificate of origin issued by Nepalese Chamber of Commerce.

Nepalese Plant Quarantine issues Phytosanitary Certificate after inspection of the

consignment. Mostly visual inspection using magnifying glass is in practice. The

certificate should clearly declare the consignment's import permit number and additional

conditions of its being free from weed-seed and soil.

The Nepalese custom clears the consignment.

In Indian custom, samples are drawn from the consignment for test or analysis to be

conducted at designated regional food labs in India. The consignment vehicle should stay

in custom until the test results are available.

The Indian Plant Quarantine conducts the post entry inspection of the consignment by

drawing samples and examining visually. A higher level authority (Asst. Commissioner)

required for clearance, if the consignment value is above NPR 160,000

After meeting all the requirements and documents the consignment is cleared

Figure 26: Sack being

cut for quality

inspection

30

Delhi, Nepali traders do not send consignment as per the sample shown. Lack of sorting,

grading and cleaning is prevalent in Nepali ginger. Due to the lack of trust in terms of quality,

it is common for Indian traders in Delhi to open every sack of Nepali ginger for verification

of quality, while they randomly select and check only a few number of sacks in case of Indian

ginger coming from Bangalore. They also observed Nepali ginger occasionally as if the

ginger imported from China was repacked and re-exported.

Major competitor for Nepali ginger in India

Nepali fresh ginger has to compete with Indian varieties coming

especially from Karnataka in terms of quality. Dry ginger has

also to compete with supplies from south India including Cochin

and Sagar and that from Nigeria as well. The Indian varieties are

preferred mostly due to its white colour, big size and low fibre

content. Nigerian varieties are not as appealing, but are cheaper

in price compared to Nepali ginger. Figure 28 shows different

varieties of dried ginger sold in India.

Figure 28: Various dry ginger varieties available in Delhi market

Prospects for Nepali ginger

India, being the largest consumer of ginger worldwide, presents greater market

opportunities for Nepal. Nepal’s export to India occupied just two and eight percent of

India's estimated total market size (quantity) in 2011/12 and 2012/13, respectively.

Despite the quality concerns, almost all of the exportable Nepali ginger is exported there.

The Indian demand for ginger is increasing. The use of dried ginger in pharmaceuticals is

also increasing. According to a study conducted by the Indian Institute of Spice Research

(IISR) in 2011, annual demand is estimated to reach 1,073,983 MT by 2030, meaning that

India needs an extra quantity of 336,956 MT ginger from its production.

As Nepal and India have special bilateral trade provision, Nepal can export ginger to

India with less formality.

Kochin Sagar Ethiopia Nigeria

Figure 27: Indian

ginger variety

31

5. Ginger Industry in Bangladesh This chapter provides overviews on ginger production and trade in Bangladesh, and analyses

the current status and future prospects of Nepali ginger there.

5.1 Production Ginger production in Bangladesh does not suffice its consumption needs. Forty-seven percent

of its estimated consumption is fulfilled through imports. Figure 29 shows the ginger

production trend in Bangladesh, which has been almost stable in the last 5 years.

Figure 29 Trend of ginger production and cultivated area in Bangladesh

Source: Bangladesh Bureau of Statistics, Government of Bangladesh, 2014

Rangamati, Rangpur, Tangail, Chittagong, Khagrachhari and Dinajpur are the important

ginger-growing districts of Bangladesh. Many farmers produce ginger in their homestead

lands.

Table 9 Trend of ginger production in various regions of Bangladesh

Name of

Region

Production quantity (MT)

2006-07 2007-08 2008-09 2009-10 2010-11 2012-13 2013-14

Chittagong 9235 11102 7069 7263 7373 7480 7591

Khagrachari 6005 5701 5741 6316 6519 6552 10860

Rangamati 8780 14282 15628 15588 16383 16721 17754

Tangail 8980 8312 7394 7527 7778 6864 6286

Dinajpur 7415 8522 7393 6736 6334 3785 3563

Rangpur 8215 13805 14196 15843 14582 13173 16799

Others 14695 15322 15187 15568 15411 14280 14182

Total 63325 77046 72608 74841 74380 68855 77035 Source: Bangladesh Bureau of Statistics, Government of Bangladesh, 2014

5.2 Trade

Domestic trade

Globally, Bangladesh is one of the major ginger consuming countries. Ginger is one of the

most preferred spices in Bangladeshi food recipes, and its consumption is increasing. It is

2006/07

2007/8

2008/9

2009/10

2010/11

2011/12

2012/13

Production 63,325 77,046 72,608 74,841 74,380 68,855 77,035

Area 8,324 9,401 9,002 9,051 9,101 8,926 9,483

7,600

7,800

8,000

8,200

8,400

8,600

8,800

9,000

9,200

9,400

9,600

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

ha

MT

32

mostly consumed in fresh form, dried and other forms of ginger are not popular in the

Bangladesh market.

In Bangladesh, farmers sell their fresh ginger to local traders, who then sell it to bigger

traders. The bigger traders consolidating the product from different local traders sell to distant

wholesalers. Finally, the wholesalers sell it to retailers and the product gets to consumers.

Ginger importers mostly sell imported ginger through commission agents on a taka (USD

0.013) /kg commission basis. The importers are mostly located in Chittagong and Dhaka. The

commission agents are based in the vegetable market centres such as Sham Bazaar in Dhaka.

The wholesalers buy the ginger from commission agents and sell through local vegetable

markets such as Kwaran Bazaar, New Market in case of Dhaka. The retailers obtain ginger

from wholesalers and sell through vegetable shops. The ginger distribution channels in

Bangladesh can be presented as:

a) Farmers Local traders Big traders Wholesalers Retailers

b) Importers Commission agents Wholesalers Retailers

Mainly two types of ginger varieties namely Chinese and local are popular in Bangladeshi

markets. Local ginger is available in markets during the main harvesting season, whereas

Chinese ginger is found in the markets throughout the year. Bangladesh also imports ginger

from India, Indonesia, Thailand and Nigeria.

Chinese ginger is clean and whitish in colour, attractive in appearance, and has low fibre

content and big sized rhizomes. Due to its low fibre content compared to other varieties,

Chinese ginger can be easily used in making powder and paste. The Chinese ginger is

packaged in 20 kg net bags with a clear label. Institutional clients such as restaurants, hotels

and spice industries have demands for Chinese ginger.

Among the different types of Indian ginger being imported to Bangladesh, the varieties from

Bangalore and Hassan are popular. The Bangalore and Hassan gingers are usually washed,

clean, light brown in colour and have medium sized rhizomes with numerous fingers, an

appealing scent and low fibre content. Another form of Indian ginger seen in the market is

from Mizoram, which is also known as “black ginger” due to its light blackish appearance.

The black ginger is mostly unwashed, containing fibre, a strong scent and medium sized

rhizomes. Indian ginger is mostly available in Bangladesh from November to February.

Local ginger is generally unwashed, dark brown in colour, containing moderate fibre and

smaller in rhizome size compared to Chinese and Indian ones and having a good scent. Due

to a good reputation of Indian varieties and their resemblance to local varieties, some traders

selling Indian varieties are accused of selling local varieties in the name of Indian ginger.

Price trend

Market price of ginger in Bangladesh is unstable as it is dependent on imports. Average

prices of local and imported ginger in the domestic market of Bangladesh are presented in

Figure 30.

Figure 30 Price trend of local and imported ginger in Bangladesh

33

Source: Department of Agriculture Marketing, Government of Bangladesh, 2014

Ginger prices in Bangladesh dropped to its lowest in the year 2012; the price then gradually

increased and reached its highest in 2014. During later months of 2014, the price was

observed to decrease gradually in response to increased supplies from China and India

(Figure 31). As November to January is the season for ginger harvest in India and

Bangladesh, the price of ginger was comparatively low in these months. After March till

September, the price fluctuated with its highest peak in June/July. During these months,

Chinese ginger is mostly supplied due to a scarcity of local and Indian ginger.

Figure 31 Price trend of local and imported ginger in Bangladesh in various months of 2014

Source: Department of Agriculture Marketing, Government of Bangladesh, 2014

Export

Bangladesh exported ginger valued at less than USD 10,000 in earlier years during the period

from 2004 to 2011. In 2012 and 2013, the export values were USD 243,000 and USD

366,000 respectively, mainly due to its export of ginger powder to Saudi Arabia.

Import

Bangladesh is the fourth largest importer of ginger worldwide in terms of value. In 2013

Bangladesh imported USD 46 million worth of ginger, which accounted to be 6.5 percent of

2009 2010 2011 2012 2013 2014

Local ginger 701 1,123 844 713 1,347 1,756

Imported ginger 738 1,283 872 678 1,244 1,833

-

500

1,000

1,500

2,000 U

SD/M

T

Year (AD)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Local ginger 1,279 1,253 1,379 1,855 1,792 2,158 2,127 1,953 1,990 1,887 1,639

Imported ginger 1,667 1,469 1,559 1,981 1,934 2,249 2,113 1,939 1,948 1,913 1,393

-

500

1,000

1,500

2,000

2,500

USD

/MT

34

the world’s total import value. However, in terms of volume and with import quantity of

65,478 MT, it is ranked as the second biggest ginger importer. The time series data revealed

an increasing trend of ginger import with a slight decline in 2012 (Figure 32). In 2013, import

reached up to USD 46,052,000, which was about 15 times higher than the import value

during 2004.

Figure 32 Trend of quantity and value of ginger imported by Bangladesh

Source: ITC, 2014

In Bangladesh, ginger is mostly imported in fresh forms. The whole ginger is neither crushed

nor grounded up, and it occupies more than 99 per cent of total import of Bangladesh (Figure

33).

Figure 33 Forms of ginger imported in Bangladesh in 2013

Source: ITC, 2014

With a 75 percent share in the total ginger import of Bangladesh, Chinese ginger is

performing very well with steady increases in the supply. Compared to 2004, the import

value of ginger from China to Bangladesh was 35 times higher in the year 2013. Other major

65396, 100%

83, 0%

Neither crushed nor ground (MT)

Crushed or ground (MT)

35

suppliers of ginger to Bangladesh are Indonesia, India and Thailand. The supply from

Indonesia is highly fluctuating with no supply in 2011 and 2012, but USD 8,478000 worth of

ginger supplied in 2013. According to traders, Bangladesh had to import ginger from

Indonesia due to high prices of Chinese ginger. Similarly, quite a large amount (USD

11,973,000) of ginger imported in 2011 was reportedly from Thailand with no or very little

import in the preceding and succeeding years.

Table 10 Import values of ginger in Bangladesh from different countries

Exporters Import value (USD ‘000) by years

2004 2005 2006 2007 2008* 2009 2010 2011 2012* 2013*

The

World

3,096 5,539 7,439 8,370 15,422 22,446 30,363 33,370 26,003 46,052

China 989 4,276 7,082 8,063 10,969 18,575 23,778 18,425 20,604 34,543

Indonesia 1,777 269 70 307 2,660 2,439 1,969 0 0 8,478

India 39 33 35 0 918 351 3,656 2,919 2,617 2,968

Thailand 14 56 13 0 0 845 102 11,973 0 40

Nigeria 0 11 0 0 858 0 0 0 2,759 0

Singapore 0 0 0 0 0 183 772 53 23 0

*mirror data

Source: ITC, 2014

Export data of Nepal shows some ginger export to Bangladesh (Figure 34) from 2009 to

2012, and no export in 2013. Sometimes Nepali ginger is exported to Bangladesh via Siliguri

in the name of Indian ginger.

Figure 34 Export of ginger to Bangladesh from Nepal

Source: TEPC, 2014

5.3 Rules and regulation for importation in Bangladesh The British Indian Governor promulgated the “Destructive Insects and Pest Act” in 1914,

which was later (during the regime of former East Pakistan) endorsed as “Destructive Insects

and Pest Rule” in 1966. In 1974, Bangladesh became a member of the International Plant

Protection Convention (IPPC) of FAO. In 1978, it also joined the Asia and Pacific Plant

2009 2010 2011 2012 2013

Nepal export (MT) 50.00 225.00 22.00 33.00 -

Nepal export (USD '000) 35.04 49.82 5.28 4.90 -

-

10.00

20.00

30.00

40.00

50.00

60.00

-

50.00

100.00

150.00

200.00

250.00

USD

'00

0

MT

36

Protection Commission. In 1989, Bangladesh amended the Destructive Insects and Pest Rule

1966 that was later repealed following promulgation of “Plant Quarantine Act" in 2011. The

Act is in force to date, and is mentioned to form a rule in 2015. Under the Plant Quarantine

Act, 2011, the Plant Protection Wing is given authority to monitor and act including search,

seizure and forfeiture. Some of the points mentioned in Plant Quarantine Act, 2011 are as

follows.

No importer shall, without an import permit, import any plant or plant product, beneficial

organism, soil or packing materials to Bangladesh

Any plant or plant product, beneficial organism or packing material shall be imported into

Bangladesh only through a designated point of entry, and upon notification for

importation, the import permit issued against the consignment and the phytosanitary

certificate issued by the National Plant Protection Authority of the exporting country

submitted to the concerned plant quarantine officer for examination.

On the import permit, there shall have a description regarding the type of treatment to be

applied on the plants or plant products at import or other measures before or after

importation of plants or plant products such as post-entry quarantine for ascertaining

phytosanitary risks

If any plant or plant product suspected harbouring any pest is imported into Bangladesh

or held in transit through Bangladesh or is transported from one part of Bangladesh to

another in contravention of the provisions of this Act, the plant or plant product shall be

seized or, as the case may be, refused to entry, destroyed, moved, treated and any other

necessary phytosanitary measures taken.

In the Import Permit, it is clearly written as 'the Phytosanitary Certificate should in addition

declare that the consignments are free from sand, soil and extraneous materials' and that 'the

Import Permit number shall be quoted in the Phytosanitary Certificate'.

5.4 Status and prospects of Nepali ginger in Bangladesh

Nepali ginger as perceived by traders

Since, there is no or negligible import of Nepali ginger, most of the ginger traders in

Bangladesh are unaware of Nepali ginger. Those who are familiar with Nepali ginger

considered it to be of low to medium quality. When some samples were shown during this

study, most of the traders ranked them in the small rhizomes category fetching the least price.

The traders mentioned in comparison to a kilogram of high quality Bangalore ginger sold for

60 Taka that a kilogram of the Nepali ginger could be sold only for 40 Taka.

Major competitor for Nepali ginger

The major competitors for Nepali ginger in Bangladesh are Chinese, South Indian (Kerala

and Karnataka), North Indian (Mizoram and Siliguri) and Bangladeshi ginger. Others are

ginger from Indonesia, Bhutan, Nigeria and Thailand. A comparison of various types of

ginger in Dhaka market is presented in Table 11.

Table 11 Summary of quality features of various types of ginger traded in Dhaka

Chinese Indian (Bangalore) Indian (Mizoram) Local (Bangladeshi)

Features

Big rhizome size

Whitish colour

Less fibre

High moisture

Features

Small rhizomes but

most pieces are more

than 200 gm.

More fibre than

Features

Similar to

Bangalore but dark

in colour

Unwashed

Features

Similar to Indian but

has thinner rhizomes

Unwashed

Good smell

37

Chinese Indian (Bangalore) Indian (Mizoram) Local (Bangladeshi)

content

Washed and cleaned

Packaged in 20 kg

net bag

Chinese

Good smell

Washed and cleaned

Shiny in colour

Packaged in 45 kg net

bag

Good smell

More fibre

Packaged in 45-60

kg gunny sack

More fibre

Loose packing

(usually 60 kg gunny

sack)

Market position

Strong presence in

market with 75% of

market share

Available

throughout the year

More expensive than

others

Major customers are

hotels and

restaurants

Market position

Sells high during main

season

Available from

December till March

Cheaper than Chinese

Major customers are

retailers and

household consumers

Market position

Sells as “black

ginger” due to dark

colour

Available from

December till

March

Is the cheapest

Major customers are

household

consumers

Market position

Good market share

during main season

Available from

November to

February

Cheaper (5-10

taka/kg) than

Bangalore ginger

Major customers are

household consumers

Prospects for Nepali ginger

Bangladesh is one of the major importers

of ginger and due to its high fresh imports;

Nepali ginger has a good prospect in

Bangladesh. However, the quality of

ginger should be improved with rhizomes

sorted to a minimum size of 200 gm.

With Bangladesh being one of the

neighbouring countries, there is advantage

of shorter distance for trade, which is very

important in terms of exporting fresh

ginger. The rules for importation are also

not stringent, which can benefit a country

like Nepal.

Due to a majority of the population having

low to medium purchasing capacity, price

is the crucial factor for the sale of ginger.

The import trend of ginger shows the instability of quantity purchased from various

countries in different years. According to them, one of the major reasons for the shift

is due to high price of regular partners such as Chinese. Nepali traders should be well

aware of the market price and competitors, and be prepared to offer similar or lower

prices than Indian products.

Trust is the crucial factor while dealing in a trade. It is reported that traders in Bangladesh are

hardly trusted in business dealing. During an interaction with Nepali traders, it was reported

that on several occasions, payments were not made on time.

Box 3: Process of business transaction

The business transaction is mainly done

through personal contact established by

the exporter in Nepal and ginger importers

in Bangladesh. Once the contact is

established, the exporter sends its ginger

sample to the importers. It is also a

common practice between the two parties

to send the pictures of the sample through

email. Once the samples are accepted by

the importers, further talks and

negotiations take place between the two

parties for the quantity, and depending

upon the quantity, the importer opens L/C

for purchase of ginger.

38

6. Conclusion and Ways Forward

6.1 Summary of market observations

The overviews of the market scenarios in India and Bangladesh are concluded in Table 12.

Table 12 Summary of the markets overviews

India Bangladesh

Largest producer and consumer of ginger Low production, meeting approximately half of

the domestic consumption needs

Exports substantial amount of ginger and its

derivatives

Export is negligible

The market consists of primarily domestic

production as it is the largest producer worldwide

The market primarily consists of imported

ginger, mainly from China

Demand for both dry and fresh forms of ginger Mostly fresh ginger is traded

Major importing partner for fresh ginger is Nepal Importing partners, besides China and India, are

not constant and keep changing

Majority of Nepali ginger is exported to India Negligible share of export from Nepal

Major competitors for Nepali ginger are Indian

products

Major competitors for Nepali ginger are

Chinese, Indian and Bangladeshi ginger

Good history of trade relationship with Nepal Evolving stage of trade relation with Nepal

Nepali exporters are aware of market scenarios Nepali exporters are unaware of market

scenarios

Nepali exporters have business relationships, and

are aware of business procedures

Nepali exporters do not have business

relationships, and are unaware of business

procedures

Willing to accept any type of ginger including

ginger containing soil

Strict on accepting only fine quality ginger.

However, ginger with soil is still found.

Due to old trade relationships, importers are

highly trusted and delivery is given on credit

Importers are hardly trusted; there are cases of

fraudulence by the importers

Visible opportunities to increase the Nepali

market share from the current 8% of total Indian

market size by increasing supply of quality

products to big markets such as Delhi

Good prospects of exporting quality products

(big and washed rhizomes) for a competitive

price (would be paid less than Indian varieties)

6.2 Major constraints observed As per the market study done in India and Bangladesh, the major constraints observed to

expand the market of Nepalese ginger in these markets are listed as below.

39

Constraints in production

Less competitive varieties: Mostly Nepalese ginger have small sized, dark brown and

fibrous rhizomes. This has reduced its competitiveness in these markets and is therefore

considered of lesser quality compared to South Indian and Chinese varieties. These

markets mostly demand ginger with big rhizome, less fibre and whitish in appearance.

Low commercial production practices: There is traditional practice of ginger

production in Nepal resulting high production costs and low returns. The farm innovation

regarding market-based production of ginger is poor specifically in quality seed and

cultivar selection, crop management and harvesting practices.

Constraints in post-harvest and processing

No quality consistency: This was mentioned to be one of the most problematic issues of

Nepalese ginger in the markets. There is less practice of sorting and grading, and most of

the ginger exported are mixed with different varieties and different grade rhizomes and

inert materials. Quality variation in the same batch is also found high resulting in low

grade and value for Nepalese ginger.

Lack of cleaning and washing facilities: Most of the exported Nepalese ginger

(especially in India) is unwashed and dirty in appearance. This has reduced the

competitiveness of the ginger, and made it prone to export bans at various points in time,

as export of ginger with soil is not allowed both in India and Bangladesh. Even the ones

that are washed (in nearby Indian city such as Naxalbari) are mostly done manually and

do not produce quality ginger.

There is lack of cleaning and washing facilities in Nepal. Initiation towards this has taken

place (see Table 4). However, it is not enough for the country’s production.

Lack of proper drying technology: Nepali dried ginger is considered inferior in the

Indian market, and is less competitive than South Indian varieties. The process of making

dry ginger in Nepal is traditional and does not use modern technology.

Constraints in marketing and export

Low visibility of Nepalese ginger: This has been observed as a serious issue in both

India (especially in Eastern Region) and Bangladesh market for Nepalese ginger. It is

seen that these markets are unaware about Nepalese ginger as it is mostly sold in the

name of Indian ginger especially as Siliguri brand. The major reasons noted for such is

due to low access of Nepalese traders directly into Indian and Bangladeshi markets.

Nepalese exporters mostly sell their products to nearby Indian cities such as Siliguri and

Naxalbari where washing and cleaning is done and sent to bigger markets.

Difficulties in meeting sanitary and phytosanitary standards: In order to officially

import ginger in India and Bangladesh, there is a requirement of obtaining plant

quarantine certificate which needs to explicitly mention that the ginger are free from

quarantined weed-seed and soil. However, due to the lack of proper infrastructure and

facilities for cleaning and washing, it has been observed to be a big problem to meet this

requirement. In present context, the certificates are being issued in some force mentioning

40

of ginger being free of weed-seed and soil, which would otherwise result in complete

stoppage of ginger export from Nepal. The issue, when raised by the importing country,

would have negative consequences in the export of ginger.

Similarly, Nepal do not have accredited lab for quality testing, resulting in compulsion of

testing to be done in Central Food Laboratory in designated Indian cities. This has

consumed more money and time of the exporters.

Local multiple taxation along transportation: Though there is provision of raising one-

time tax by a local government at place where ginger originated, the traders have to pay

such tax in all districts along transportation. This is more prevalent in western region than

eastern. For e.g. the trader transporting ginger from Salyan to Banke has to pay NPR

0.25/kg as DDC tax in Salyan then NPR 1000/truck in Dang and Kapilvastu as district

export tax.

Extra-legal payment required during transportation and export: Extra-legal

payments to local gangs, interest groups as well as security along transportation and

various authorities at the export points have also increased the cost of ginger export.

Transfer of ginger through quarantine (food and plant) and custom clearances at the

export points by exporting traders is intermediated by export (Nepal), import (India) and

custom agents. The export traders with the help of the agents upon consignment based

extra-payment mange transfer of their ginger through checking and custom points. Such

roughly added a rupee cost on per kilogram basis on the export of ginger.

High cost for custom clearance: Approximate cost of custom clearance while exporting

to India is NPR 3,200 per truck. However, exporters have to pay anywhere from NPR

7,000 to 10,000 per truck for the clearance due to unofficial costs as discussed earlier.

Besides, the Indian custom authorities at the custom point only allow clearance to a

consignment valued at maximum NPR 160,000 (USD 1623). Custom clearance to a

higher valued consignment requires countersign by the Assistant Commissioner that

added to the costs of documentation for exporting higher value consignment.

Transit issues: The transit to Bangladesh is time consuming as it takes place at specified

times during daylight hours with security escorts. Only convoys of less than 25 trucks are

allowed at a time. Moreover, transportation should be done only in pilfer proof

containers/trucks that can be securely locked, and only the vehicles registered to Nepal

are permitted. Such issues put major limitations on free transportation of goods.

6.3 Ways forward To increase competitiveness of Nepal’s ginger in India and Bangladesh, Nepal needs to work

through the entire value chain. Quality and price are the major factors to be considered to

make the products competitive in these markets. A two-pronged strategy is suggested for

developing the market in India and Bangladesh for Nepali ginger and ginger products. They

are i) assurance of quality production of ginger and its derivatives and ii) support in

marketing and branding for better market penetration and outreach.

A) Assurance of quality production of ginger and its derivatives

To obtain exportable ginger products, the Nepali ginger industry should work in various

functional levels such as production, post-harvest handling and processing. The areas of

intervention in each of the levels are given below.

41

Introduction of appropriate variety as per the market preference: Nepal should

introduce new varieties of ginger, which produce bigger rhizomes that are whitish in

colour with less fibre content and higher productivity. For this, some piloting plots should

be established in various locations to test high yielding and better quality varieties

including Chinese and Indian ones. Once successful, there should be multiplication of the

varieties in various parts of the country. This will result in overall increment in

productivity as well as quality of ginger grown in Nepal. Some instances where private

sector has initiated such practice can be seen in Nuwakot. Chinese varieties tested there for

cultivation has resulted in successful production of big and whitish rhizomes that is

gaining more popularity in local markets such as Kalimati.

Farmers should be trained in good agriculture practice (GAP): Appropriate knowledge is crucial for better productivity and quality production across Nepal. The farmers should be made aware of proper seed/variety selection and healthy ginger production practices. An expansion of GAP based ginger production would help to obtain better quality and healthier ginger products, which can be a base for getting certified products for improved market penetration. An initiation of the Ginger Competitiveness Project towards better ginger production practices in Eastern Region through establishment of Farmer’s Field School is highly appreciated by farmers, and has resulted in an increase in ginger productivity and an introduction of ginger production through improved practices. This sort of initiation should be replicated throughout the country.

Practising harvesting of mother rhizome: The mother rhizome is harvested during off seasons. In eastern Nepal, there is a practice of harvesting mother rhizome, but this is not the case in the western parts. In order to increase ginger supply during the off season in both the markets and to reap the benefit of higher prices, the mother rhizome harvesting practice should be encouraged throughout the country. As there are some reports of high disease infestation in mother rhizome harvesting areas, proper cultural practices should be adopted while harvesting the rhizomes.

Post-harvest handling and processing: In order to develop/expand Nepalese ginger market in India and Bangladesh, there is a need of quality production and proper post-harvest handling and processing. As both the markets have high demand for properly washed, graded and properly packed ginger, it is very crucial to work seriously in these areas. Proper cleaning, sorting and grading of ginger rhizomes at farmers' level and commercial scale are recommended in order to improve quality of ginger products. Cleaning, sorting and grading of ginger rhizomes have become urgent from two perspectives i) to satisfy the import requirements of both the countries, which especially demand for soil free ginger and ii) to obtain better market position and product value in these markets. In this initiation, we should work both at farmers’ level as well as commercial level. At farmers’ level, cleaning can be done through the construction of small washing plants with two or three small tank systems. If the tanks are not available, cleaning can also be done in vessels. Illustration of such technology can be seen in a detail report of National Agriculture

Innovation Project (NAIP, 2014). After cleaning, ginger should be sorted, graded and packaged properly. At commercial level, construction of bigger infrastructure for washing is recommended at specific trade points, at least one in each Development Region. These washing facilities will have either manual or automatic cleaning mechanisms and the capacities of such facilities will vary depending upon the availability of ginger in that particular region. The infrastructures require higher investments, and therefore can be built through a public-private partnership model.

42

The on-going initiative of developing and running a washing centre in Dhulabari is highly commendable; it has to be replicated in other parts especially Butwal and Nepalgunj after examining its performance. Similarly, guidelines and capacity building activities to the managers and operators of the facilities are equally important.

Proper packaging: Packaging also plays an important role in increasing the competitiveness of the product as well as keeping the product fresh for longer time. It is recommended to have a standard packaging size of 60 kg for better market performance in the Indian and Bangladeshi markets. Similarly, it would help in visibility of Nepalese products and be more trustworthier if placed appropriate labels in the packaging.

Proper storage: Storage is important if we want to reap the benefits of off season selling. Chinese ginger is available year round due to availability of cold storage, which provides them with higher prices. Large scale cold storage can be built at major market centres, whereas small scale and low cost storage at local level. .

Establishment of modern technology for dry ginger (sutho) making: The existing sutho making technology in Nepal is traditional as it is manually operated and very tedious to operate. This reduces the quality of dry ginger as well as scale of production. Quality and scale of dry ginger production can be improved with modern drying technologies that in turn will also reduce distress sale of fresh ginger at relatively low prices. The sutho making technology widely used in Southern India can be adopted in Nepal.

B) Support in marketing and branding for better market penetration and outreach

Nepal has been practicing traditional methods of marketing without following proper product

development, packaging and branding practices. In order to improve the business relation

with Indian and Bangladeshi counterparts, the following recommendations are suggested.

Strengthening of distribution channels: Identifying exporters who are interested in doing business with improved-quality-ginger would be an initiating point to strengthen the distribution channel. Then they have to be linked with buyers stationed in Indian and Bangladeshi markets. In this process, there is a need for organization of exporters centered capacity building activities related to export procedures, export document preparation and business communication. Similarly, ginger farmers and traders, who want to be involved in a better quality ginger marketing channel, have to be trained on proper postharvest handling, storage, packaging and transportation.

Developing auction markets: Auction marketing development could be an appropriate option in the ginger sector to give buyers and sellers of ginger a common place and thereby make the trade more formal, transparent and fair. We can start an auction market close to one of the washing facilities. Upon success of the auction market, it can be replicated in other major ginger marketing centres.

Collective branding of ginger: , Collective branding could be a good option to develop visibility of Nepalese ginger, and to promote its trade in Indian, Bangladeshi and other export markets. Registration of a collective ginger trademark initiated by the TEPC with support of the NGPTA would ensure continuity and sustainability. Furthermore, registration of a collective trademark could be completed in major importing countries including India and Bangladesh.

43

Facilitation/participation in business meetings, trade fairs and exhibitions: Nepal can put ginger as one of the featured commodities in international trade fairs organized in Nepal. Similarly, the entrepreneurs and associations should be supported to participate in the trade fairs and exhibitions in the target countries. Further, the Ministry of Commerce and Supplies and FNCCI can facilitate to conduct business meetings with relevant exporters and importers to establish a meaningful business relationship.

Negotiate to increase the limit of ginger consignment value applied in Indian custom points: The Indian authorities at the custom point (such as Kakarbhitta) only allow clearance to a consignment valued at maximum of NPR 160,000 (USD 1623). Custom clearance of a higher value consignment requires countersign by the Assistant Commissioner usually situated bit far from border (Siliguri), which adds costs of documentation for exporting higher value consignment. Looking at the current market value and the increased export, negotiation should be done with Indian government to increase such limit.

Establishment of a contact office in Bangladesh for a certain period: The market of Bangladesh is very unreliable. Nepali exporters are not comfortable with Bangladeshi counterparts because of a lack of trust in business. Therefore, a contact office for Nepali ginger should be established in Bangladesh for an initiation of the trade. The office will take care of understanding ginger market situation there, providing information about ginger traders in the market, establishing linkages between Nepali exporters and Bangladeshi importers, facilitating deals and ascertaining fair transactions between the parties. The centre can also prepare a list of importers, who it believes are good to have business with. The office can be ceased upon smooth operation of the business,.

Collaboration with Trading Corporation of Bangladesh (TCB): TCB is a government body that looks after import-export businesses as well as regulates sales and distributions of imported goods through appointment of dealers and agents. TCB has been importing ginger from several countries. Our government can take initiatives to collaborate with TCB to supply ginger to Bangladesh as per its requirement.

Support to establish accredited laboratory: An accredited laboratory should be established so that the importing country (esp. India) can recognize the test reports and certification issued by the laboratory. Existing laboratories should be upgraded, and negotiations should be made with Indian counterparts to recognize the tests done by the laboratories.

44

References Abubaker, A. (2011, April). Ginger: A rhizome with high export value. Facts for you.

Camacho, H. E., & Brescia, A. (2009). The Australian Ginger Industry: Overview of Market

Trends and Opportunties. The State of Queensland.

FAO. (2002). Ginger: Post-Production Management for Improved Market Access. Retrieved

2014, from www.fao.org/

FAS. (2013). Food and Agriculture Import Regulations and Standards-Narrative, India

Country Report,. New Delhi: Global Agricultural Informatioin Network (GAIN).

FSSAI. (n.d.). Manual on Food Import Clearance System (FICS). India.

Gracy, C. e. (2013, 12 30). Store and sell ginger after May 2014. Agropedia.

HVAP. (2011). Value Chain Analysis of Ginger Subsector in Nepal. Surkhet, Nepal.

ICAR. (2014, August). Ginger (Extension Pamphlet). Kerala, India.

ITC. (2014). Retrieved 2014, from www.intracen.org

NAIP. (2014, March). A Value Chain on Ginger and Ginger Products. Bhubaneswar, India.

NEAT. (2011, August). Value Chain/Market Analysis of Ginger Sub-sector in Nepal.

Kathmandu, Nepal.

NSCDP. (2014). Annual Report 2012/13. Lalitpur, Nepal.

Parthasarathy, V. e. (2011). Vision 2030. Calicut, Kerala: Indian Institute of Spice Research.

Ravi, R. (2012, August 04). Ginger prices set to rise on loweryeild from new crop. The

Financial Express.

Rijal, I. P. (2011). Public support in the production and marketing system in agriculture with

special focus on quarantine system. Lalitpur, Nepal.

46

Annexes

47

Annex 1: Brief on ginger, its derivatives and their usage

Primary product Fresh ginger:

Fresh ginger is rhizome that is dug up from soil and has high moisture content. Two forms of

fresh ginger is found, i) young (baby rhizome) and ii) mature (mother rhizome). The young

ginger has mild flavour and has a pale, thin skin that does not require peeling. Mature

rhizome has a tough skin and requires peeling to get to the fibrous flesh. Fresh ginger is either

chopped or grated before use and is used mostly as spice in vegetables. The major consumers

of fresh ginger are mostly Asians and therefore it is in high demand across Asia. Due to

Asian immigrants, the demand for fresh ginger has also increased in Western Europe and

North America (FAO, 2002). Light-coloured ginger has traditionally been priced higher for

its subtle lemon-like aroma. Dark ginger has more heat and is favoured for extraction

purposes. Fresh ginger is used as a vegetable.

Dried ginger:

Dried ginger is found as a whole rhizome or in sliced form. Some dried ginger is sold with

the root skin left on whereas usually the skin is peeled off. To prepare the skinless dried

ginger, the curing process, which consists of boiling the ginger rhizomes in water. The skin is

then removed by peeling, scraping or slicing. Before use, it is soaked in recipe liquid. Dried

ginger may be further processed to produce oil.

Secondary products (Examples) Ginger oils

Ginger oils are derived through steam distillation of the rhizomes. Oils have a spicy and

peppery aroma and are used for as antiseptics, aphrodisiacs, laxatives, stimulants, and for

other tonic properties. It is mostly used after blending with other essential oils to produce

different mixtures for various ailments. It is preferred to dried spices as flavouring by the

food industry as they are more stable, cleaner, free from contaminations, and can be

standardized by blending oils from different sources (FAO, 2002). Essential oils are used in

the manufacturing of soft drinks, ginger beer and food preparation.

Ginger candies

The ginger is boiled in sugar syrup and then is air-dried and coated in sugar to obtain candied

ginger. Ginger candies are popular in Australia and the product from there is considered to

have “superior and consistent quality”(Camacho & Brescia, 2009).

Ginger Oleoresins

Oleoresins are obtained through solvent extraction and hence contain volatile fractions as

well as other components that are soluble in the solvent used in the extraction process. It is

also preferred by the food industry as a flavouring agent. Gingerols are responsible for ginger

pungency and as gingerols are decomposed by heat during distillation process, it is found in

higher concentrations in oleoresins extractives.

Ginger pickle

The root of ginger is sliced paper-thin and pickled in a sweet vinegar solution. This pickle

often accompanies sushi and is served to refresh the palate between courses. It is coloured

pink or red (Camacho & Brescia, 2009).

Nutraceuticals

48

Ginger enters in many ayurvedic formulations. In the United States and Europe, ginger

preparations are sold as nutraceuticals or over-the-counter remedies against nausea, motion

sickness, and migraine. It is listed in the German Commission E Monographs as an approved

phyto-medicine against dyspepsia and to prevent motion sickness.

Ginger tea

Ginger tea, prepared by cooking slices of fresh ginger for a few minutes, is a spicy and

healthy drink. The readymade ginger tea bag....

49

Annex 2: Quality Standards for Export In herbs and spices, there are two major international standards, those set by the United States

and the European Union (EU). Standards relying on the same general parameters also exist in

the countries responsible for growing herbs and spices, such as the Indian Spice Board. These

are influenced by the standards set by the major importing countries. There are various types

of tests that make up the range of international standards. Some of them are cleanliness, ash

level, acid insoluble ash (AIA), volatile oil (V/O) determination, moisture content, microbial

measures, pesticides level, mycotoxin levels and particle size.

The American Spice Trade Association (ASTA) has established standards for Cleanliness

Specifications in terms of permitted amounts of extraneous matter or filth, mould (visible),

insect excreta and insect damaged materials. It has become a standard for most exporting

countries. Importing countries that do not have specified standards may use ASTA’s

specifications (FAO). Most producing countries have built up their facilities to meet the

requirements as per ASTA Cleanliness Specifications.

ASTA Cleanliness Specifications for Ginger

Whole

insects,

dead

Excreta,

Mammalian

Excreta,

others Mold

Insect

Defiled/Infested

Extraneous/Foreign

Matter5

by count by mg/kg by

mg/kg No more than 3% moldy pieces

and/or insect infested pieces by

weight

% by weight

4 6.6 6.6 1.00

2 Extraneous matter includes but is not restricted to: stones, dirt, wire, string, stems, sticks, non toxic

foreign seeds, excreta, manure and animal contamination

The US government specification for dry ginger and powder is as follows:

US Government Specification for Dry Ginger and Powder

Total Ash

(%w/w) max

Acid

Insoluble Ash

(%w/w) max

Moisture(%w/w)

max

Volatile oil

(v/w) min

Crude fiber

max (%)

Starch min

(%)

7 1 12 1.5 8 42

EU member countries such as UK, Germany, and the Netherlands have their own

specifications. But standards in Europe are typified by the standards set by the European

Spice Association (ESA), which draw both on national and international standards issued by

the ISO (International Standards Organization). The following table presents the minimum

quality standards for ginger set by ESA.

European Spice Association (ESA) Minimum Quality Standards for Ginger

Total Ash (%w/w)

max

Acid Insoluble Ash

(%w/w) max Moisture(%w/w) max Volatile oil (v/w) min

(ISO) (ESA) (ISO) (ISO)

8 2 12 1.5

As per the ESA, the extraneous matter and foreign matter should not exceed 1% and 2%

respectively; should be free from live and/or dead insects, insect fragments, and rodent

5 Extraneous matter includes but is not restricted to : stones, dirt, wire, string, stems, sticks, non toxic foreign

seeds, excreta, manure, and animal contamination

50

contamination visible to naked eye. In microbial analysis, Salmonella must be absent in (at

least) 25 gm. of material, yeast and mould maximum up to 106/g and E. Coli maximum up to

103/g. The European Union has fixed limits for aflatoxin and it should not exceed 10 ppb in

total.

To be sold as “organic”, a product must be grown following organic agricultural practices

and be certified by an accredited certification body. The International Federation of Organic

Agriculture Movement (IFOAM) has established organic production, processing and trading

standards, and tried to harmonize certification systems worldwide. However, countries can

have their own standards such as Japanese Agriculture Standards (JAS) of Japan, EU organic

standards, US organic standards. To comply with organic standards and practices, the

operator must document all farming and post-harvest activities including farm field map,

field history, activity register, input records including purchase, output records including

sales, harvest records, storage records, pest control records, movement records, equipment

cleaning and labelling. All such documents must meet specific standards that are enumerated

in directives issued by the certification agencies.

In the processing plant, the operator must present an “organic handling plan” which shows

how contamination from prohibited materials and with non-organic products can be

prevented. This includes a detailed description of the process, receiving and storage of

ingredients and finished products, cleaning and sanitation of the processing equipment,

facilities pest management, and a documentary “paper trail” that must permanently record all

of the above.

In India, the Bureau of Indian Standards (BIS) has the AGMARK grading system. It

categorizes ginger to different grades based on the size and weight of rhizome, extraneous

matter, and lime content as calcium oxide.

51

Annex 3: Codex standard for ginger (CODEX STAN218-1999)

1 DEFINITION OF PRODUCE

This Standard applies to the rhizome of commercial varieties of ginger grown zingiber

from Zingiber officinale Roseoe, of the Zingiberaceae family to be supplied fresh to the

consumer after preparation and packaging. Ginger for industrial processing is excluded.

2. PROVISIONS CONCERNING QUALITY

2.1 MINIMUM REQUIREMENT

In all classes, subject to the special provisions for each class and the tolerances the

ginger must be:

- Whole

- Sound, produce affected by rotting or deterioration such as to make it unfit for

consumption is excluded.

- Clean, practically free of any visible foreign matter

- Practically free of damage caused by pests affecting the general appearance of the

produce

- Free of abnormal external moisture, and if washed- dried properly, excluding

condensation following removal from cold storage

- Free of any foreign smell and/or taste

- Firm

- Free of abrasions, provided light abrasions which have been dried properly are not

regarded as a defect

- Sufficiently dry for the intended use: skin, stems and cuts due to harvesting must be

fully dried.

2.1.1 The development and condition of the ginger must be such as to enable it:

- To withstand transport and handling and;

- To arrive in satisfactory conditions at the place of destination.

2.2 CLASSIFICATION

Ginger is classified in three classes defined below:

2.2.1 “Extra” Class

Ginger in this class must be of superior quality. It must be characteristic of the

variety and/or commercial type. The roots must be cleaned, well shaped and free of defects,

with the exception of very slight superficial defects, provided these do not affect the general

appearance of the produce, the quality, the keeping quality and presentation in the package.

2.2.2 CLASS I

Ginger in this class must be of good quality. It must be characteristic of the variety

and/or commercial type. The roots must be firm without evidence of shrivelling or

dehydration and without evidence of sprouting. The following slight defects however may be

allowed provided these do not affect the general appearance of the produce, the quality, the

keeping quality and presentation in the package:

- Slight skin defects due to rubbing provided they are healed and dry and the total

surface area affected not exceeding 10%

2.2.3 CLASS II

52

This class includes ginger that does not qualify for inclusion in the higher classes, but

satisfies the minimum requirements specified in section 2.1 above. The roots should be

reasonably firm. The following defects however, may be allowed provided the ginger retains

its essential characteristics as regards the quality, the keeping quality and presentation:

- Skin defects due to rubbing, provided they are healed and dry and the total surface

area affected not exceeding 15%

- Early signs of sprouting (not more than 10% by weight by unit of presentation)

- Slight markings caused by pests

- Healed suberized cracks, provided they are completely dry

- Slight traces of soil

- Bruises

3. PROVISIONS CONCERNING SIZING

Size is determined by the weight of the ginger.

Size Code Weight (grams)

A 300

B 200

C 150

4. PROVISIONS CONCERNING TOLERANCES

Tolerances in respect of quality and size shall be allowed in each package for produce

not satisfying the requirements of the class indicated.

4.1 QUALITY TOLERANCES

4.1.1 “EXTRA” CLASS

Five percent by number or weight of ginger not satisfying the requirements of the

class, but meeting those of class 1 or, exceptionally, coming within the tolerances of that

class.

4.1.2 Class I

Ten percent by number or weight of ginger not satisfying the requirements of the class

but meeting those of Class II or, exceptionally, coming within the tolerances of that class .

4.1.3 Class II

Ten percent by number or weight of ginger satisfying neither the requirements of the

class not the minimum requirements, with the exception of produce affected by rotting or any

other deterioration rendering it unfit for consumption.

4.2 SIZE TOLERANCES

For the “Extra” Class 5% and for class I and class II. 10% by number or by weight of

ginger not satisfying the requirements in regards to sizing.

5. PROVISIONS CONCERNING PRESENTATION

5.1 UNIFORMITY

53

The contents of each package must be uniform and contain any ginger of the same

origin, variety and/or commercial type, quality and size. The visible part of the package must

be representative of the entire contents.

The weight of the heaviest hand (rhizome) may not be more than twice the weight of

the lightest hand (rhizome) in the same package.

5.2 PACKAGING

Ginger must be packed in such a way as to protect the produce. The materials used

inside the package must be new one, clean and of a quality such as to avoid causing any

external or internal damage to the produce. The use of materials, particularly of paper or

stamps bearing trade specifications is allowed provided the printing or labelling has been

done with non-toxic ink or glue .

Ginger shall be packed in each container in compliance with the Recommended

International Code of practice for packaging and Transport of Fresh Fruits and Vegetable

(CAC/RCP44-1995)

5.2.1 Description of Containers

The containers shall meet the quality, hygiene, ventilation and resistance

characteristics to ensure suitable handling, shipping and preserving of the ginger, packages

must be free of all foreign matter and smell.

6. MARKING OR LABELLING

6.1 CONSUMER PACKAGES

In addition to the requirements of the Codex General Standard for the Labelling of

Pre-packaged Foods (CODEX STAN 1-1995). The following specific provisions apply:

6.1.1 Nature of Produce

If the produce is not visible from the outside, each package shall be labelled as to

name of the variety and/or commercial type.

6.2 NON-RETAIL CONTAINERS

Each package must bear the following particulars, in letters grouped on the same side,

legibly and indelibly marked and visible from the outside, or in the documents accompanying

the shipment.

6.2.1 Identification

Name and address of exporter, packer and/or dispatcher. Identification code (optional)

2.

6.2.2 Nature of Produce

Name of the produce if the contents are not visible from the outside. Name of the

variety and/or commercial type (optional).

6.2.3 Origin of Produce

Country of origin and optionally, district where grown or national regional or local

place name.

1 For the purposes of this Standard this includes recycled material of food – grade

quality.

54

2 The national legislation of a number of countries requires the explicit declaration

of the name and address.

6.2.4 Commercial Identification

- Class:

- Size (size code or minimum and maximum weight in grams):

- Number of units (optional):

- Net weight (optional):

6.2.5 Official Inspection Mark (optional)

7. CONTAMINANTS

7.1 The produce covered by this standard shall comply with the maximum levels of the

Codex General Standard for Contaminants and Toxins in Food and Feed (CODEX STAN

193-1995).

7.2 The produce covered by the Standard shall comply with the maximum residue Limits

for pesticides established by the Codex Alimentarius Commission.

8. HYGIENE

8.1 It is recommended that the produce covered by the provisions of this Standard be

prepared and handled in accordance with the appropriate sections of the Recommended

International Code of Practice-General Principles of Food Hygiene (CAC/RCP 1-1969).

Code of Hygiene Practice for Fresh Fruits and Vegetables (CAC/RCP 53-2003), and other

relevant Codex texts such as Codex of Hygienic Practice and Codex of Practice.

8.2 The produce should comply with any microbiological criteria established in

accordance with the Principles for the Establishment and Application of Microbiological

Criteria for Foods (CAC/GL 21-1997).

55

Annex 4: Top 10 countries in terms of ginger production quantity

Countries 2008 2009 2010 2011 2012

Global

share

India 390080 380100 385330 702000 703000 34%

China 297000 350000 365000 420000 425000 20%

Nepal 161171 178987 210790 216289 255208 12%

Nigeria 175070 168800 162223 160000 156000 7%

Thailand 161505 170125 172681 152630 150000 7%

Indonesia 154963 122181 107735 94743 113851 5%

Bangladesh 77046 72608 74841 74380 72084 3%

Japan 49800 53200 53800 54200 55000 3%

Cameroon 12584 33086 39342 40531 41000 2%

Taiwan 31810 31393 34864 36617 37500 2%

Annex 5: Top 10 countries in terms of ginger production area

Countries 2008 2009 2010 2011 2012

Global

share

India 104360 108640 107540 149100 150000 47%

Nigeria 55690 52330 52330 48910 48000 15%

China 27000 34000 35000 38000 38500 12%

Indonesia 36000 27000 24000 21000 25000 8%

Nepal 14007 15838 18041 19081 20256 6%

Thailand 9855 10081 10248 9757 9000 3%

Bangladesh 9416 9017 9066 9116 8704 3%

Cameroon 1798 4409 4629 4898 5000 2%

Japan 1920 1980 1980 1950 2000 1%

Taiwan 1198 1136 1198 1256 1300 0%

Annex 6: Varieties of ginger in India

Improved varieties of ginger in India

Variety Fresh mean

yield (t/ha)

Maturity

(days)

Dry

recovery

(%)

Crude fibre

(%)

Oleoresin

(%)

Essential oil

(%)

IISR-

Varada

22.6 200 20.7 4.5 6.7 1.8

Suprabha 16.6 229 20.5 4.4 8.9 1.9

Suruchi 11.6 218 23.5 3.8 10.0 2.0

Suravi 17.5 225 23.5 4.0 10.2 2.1

Himagiri 13.5 230 20.6 6.4 4.3 1.6

IISR

Mahima

23.2 200 23.0 3.26 4.48 1.72

IISR

Rejatha

22.4 200 19.0 4.0 6.3 2.36

56

Local cultivars/land races of ginger in India

Variety Fresh mean

yield (t/ha)

Maturity

(days)

Dry

recovery

(%)

Crude fibre

(%)

Oleoresin

(%)

Essential oil

(%)

China 9.5 200 21.0 3.4 7.0 1.9

Assam 11.78 210 18.0 5.8 7.9 2.2

Maran 25.21 200 20.0 6.1 10.0 1.9

Himachal 7.27 200 22.1 3.8 5.3 0.5

Nadia 28.55 200 22.6 3.9 5.4 1.4

Rio-de-

Janerio

17.65 190 20.0 5.6 10.5 2.3

57

Annex 7: Market arrival of ginger in Azadpur market

Quantity of fresh ginger arrival in Azadpur market from 2001 to 2013

Monthly arrival of fresh ginger in Azadpur Market from 2009/10 to 2013/14

-

20,000.0

40,000.0

60,000.0

80,000.0

100,000.0

120,000.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MT

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

April May June July Aug Sep Oct Nov Dec Jan Feb Mar

MT

2009/10 2010/11 2011/12 2012/13 2013/14

58

Annex 8: Agmark standards of ginger classification

Grade designations and quality of Garbled Non-bleached Ginger (Whole)

Grade

Designation Quality

Special Characteristics

Size of

rhizomes,

(length in

mm). (Min)

Organic

Extraneous

matter, %

(m/m)

(Max)

Inorganic

extraneous

matter, %

(m/m)

(Max)

Moisture,

% (m/m) (Max)

Total

ash, % (m/m) (Max)

Calcium

(as

calcium

oxide) %

(m/m)

(Max)

Volatile

Oil, %

(ml/100gm) (Min)

(1) (2) (3) (4) (5) (6) (7) (8) Special Standard

20.0 15.0

1.5 1.5

0.5 0.5

12.0 13.0

8.0 8.0

1.1 1.1

1.5 1.0

59

Annex 9: List of Importer from Bangladesh 1. M/S S.M. Trading

35, Haricharan Roy Road,

Dhaka-1100

Cell: +88-01912674647

+88-01727547409

Ph: +88-02-9552110

Fax: +88-02-7175174

Email: [email protected]

Proprieter: S. M. Rony

2. M/S B.M. International

35, North Brook Hall Road,

Dhaka-1100

Cell: +88-01711536284

+88-01971536284

Ph: +88-02-9552110

Fax: +88-02-7175174


Proprieter: Milon Chandra Ghosh

3. M/S Al-Fayed Traders

38/6/1, North Brook Hall Road, Lakuthi (River side)

Dhaka-1100

Cell: +88-01819429881

+88-01720800270

Ph: +88-02-7122432

Proprieter: Md. Mahabubul Alam

4. M/S Bhai Banijjalay

Habib Mansion,

38/A, North Brook Hall Road (3rd

Floor)

Shambazar, Dhaka-1100

Cell: +88-01716217986

Ph: +88-02-9570172


[email protected]

Manager: Ranabir Roy

5. M/S Sigdar and Sons


Cell: +88-01675588516

+88-01711538163

Proprietor: Musharraf Sigdar

6. M/S Surma Traders


Cell: +88-01815005339

Proprietor: Judong Shah

mailto:[email protected]




60

7. M/S Risan Enterprises


Cell: +88-01711530473

Proprietor: Montu Miya

8. M/S Rajbhari Bhandar


Cell: +88-01712103531

Proprietor: Majed

9. M/S Sanjida Enterprise

74 B. K. Das Road,

Dhaka

10. M/S Arif Enterprise,

Station para, Station Bazaar, Rohanpur, Gomastapur,

Chapainawabganj, Rajshahi

11. M/S K/L Internation

2/2-1, Chawk Circular Road,

Dhaka-1211

12. M/S Shahnur Trade (BD) Ltd

205/B, Fakirapul, Motijeel,

Dhaka

13. M/S Best solution

15, DIT road, East Rampura

Dhaka-1219

14. M/S Khalilullah

5 No. Municipals Tank Road,

Khulna

15. M/S Ideal Associates

43/1 Moneshwar, Zigatola

Dhaka-1209

61

Annex 10: List of importers in India 1. M/S Varun Choudhary and Son

Shop NO. D-1409, New Vegetable Market

Azadpur, Delhi-33

Cell: +91-9811009238

Proprietor: Varun Chaudhary

2. M/S Radhika Enterprises

536, Katra Ishwar Bhawan

Khari Baoli, Delhi-110006

Cell: +91-9212367763, 9811167763


Proprietor: Sahil Kumar, Anil Kumar

3. M/S Dhirendra Prakash and Company

A-1171, New Subzi Mandi,

Azadpur, Delhi-110033

Cell: +91-9818086862, 9891069594

Proprietor: D.P. Sharma


62

Annex 11: Organization and individuals visited Name Company/Organi

zation

Position Address/Phone Type

Bangladesh

Md. Abdur

Rashid

Department of

Agriculture

Marketing

Deputy

Director

(MI)

Ministry of Agriculture, Khamarbari,

Farmgate, Dhaka

Tel: +88-02-9113059

Government

Kbd. Md.

Mozaffar

Rahman

Plant Quarantine

Wing

Department of

Agricultural

Extension

Deputy

Director

(Quarantine)

Ministry of Agriculture, Khamarbari,

Farmgate, Dhaka

Tel: +88-02-8127998

Government

Anarul Kabir Department of

Agriculture

Marketing

Deputy Chief Ministry of Agriculture, Khamarbari,

Farmgate, Dhaka

Tel: +88-02-9113059

Government

Md. Alamin Import Division

Trading

Corporation of

Bangladesh

Kwaraan Bazar, Dhaka

Cell: +88-01766535072

Government

Md. Abdul

Haliu

Bangladesh

Bureau of

Statistics

Deputy

Director

Agargoan, Dhaka

Cell: +88-01717250549

Government

S. M. Rony S.M. Trading Proprietor 35, Haricharan Roy Road,

Dhaka-1100

Cell: +88-01912674647

Importer

Milon

Chandra

Ghosh

B.M.

International

Proprietor 35, North Brook Hall Road,

Dhaka-1100

Cell: +88-01711536284

Importer

Md.

Mahabubul

Alam

Al-Fayed

Traders

Proprietor 38/6/1, North Brook Hall Road,

Lakuthi (River side)

Dhaka-1100

Cell: +88-01819429881

Importer

Ranabir Roy Bhai Bhai

Banijjalay

Manager 38/A, North Brook Hall Road (3rd

Floor)


Cell: +88-01716217986

Importer

Musharraf

Sigdar

Sigdar and Sons Proprietor Shambazar, Dhaka-1100

Cell: +88-01675588516

Importer

Judong Shah Surma Traders Proprietor Shambazar, Dhaka-1100

Cell: +88-01815005339

Commission

Agent

Salam Salam

Enterprises

Proprietor Cell: +88-01727389890 Commission

Agent

India

Raju Kholi Chamber of

Youth

Association

President

A-242, New Subzi Mandi,

Azadpur, Delhi-110033

Cell: +91-9810123534

Varun

Chaudhary

Varun

Choudhary and

Son

Proprietor Shop NO. D-1409, New Vegetable

Market

Azadpur, Delhi-33

Cell: +91-9811009238

Importer

63

Sahil Kumar Radhika

Enterprises

Proprietor Khari Baoli, Delhi-110006

Cell: +91-9212367763, 9811167763

Importer

D.P. Sharma Dhirendra

Prakash and

Company

Proprietor Azadpur, Delhi-110033

Cell: +91-9818086862,

Importer

Nepal

Bikesh

Chitrakar

Sector Analyst Samarth-

NMDP

Patan Dhoka, Lalitpur

Dr. Deepak

Mani Pokhrel

Ginger

Competitiveness

Project

Project

Manager

Dhulabari, Jhapa

Narendra

Khadka

NGPTA Chairman Dhulabari, Jhapa Exporter

Hemanta

Bohora

NGPTA Secretary Dhulabari, Jhapa Exporter

Satyam

Khadka

NGPTA Dhulabari, Jhapa

Indra Bahadur

Buddhathoki

NGPTA General

Secretary

Dhulabari, Jhapa

Trader

Rajendra

Kharel

District

Agriculture

Development

Office

Plant

Protection

Officer

Bhadrapur, Jhapa Government

Sanjeev Shah Dhulabari, Jhapa

Exporter

Rajesh Shah Dhulabari, Jhapa Exporter

Khem

Pokhrel

Ilam Trader

Vijay Lal

Karna

Bhanu Dutta

Mishra

Budur Jha

Plant Quarantine

Office

Kakarbhitta, JHapa Government

Shyam Limbu Custom

clearing

agent

Kakarbhitta, Jhapa Clearing

Agent

K. N.

Malhotra

Rijal Tashi

Industries Pvt.

Ltd.

General

Manager

Itahari, Sunsari Processor

Prakash

Shrestha

Kalimati, Kathmandu Trader

Rajendra

Adhikari

Nepal Spice

Crop

Development

Board

Khumaltar, Lalitpur Government

Purshottam

Ojha

SAWTEE Sr.

Consultant

Baluwatar, Kathmandu Regional

NGO

Nijamuddhin

Raina

Nepalgunj, Banke Exporter

Jamal Khan Plant Quarantine

Office

Rupidhia, Banke Government

64

Nadeem

Ahmed

Plant Quarantine

Office (India)

Plant

Quarantine

Officer

Rupaidhia

India

Government

Sushil Kumar Indian Custom Rupaidhia, India Government

Hajiz-Ur-

Rehman

Ansari

Nepalgunj, Banke Clearing

agent and

trader

Tank Prasad

Sharma

Gayatri Trade

Center

Nepalgunj, Banke Trader

Rabindra N.

Shukla

Satya

International

Nepalgunj, Banke Trader

Bimal Nepal Trade and

Export

Promotion

Center

Deputy

Executive

Director

Lalitpur Government

65

Annex 12: Region wise production and area of ginger in Bangladesh from 2006/7 to 2013/14 SL Name of

Zila/Region

2006-07 2007-08 2008-

09

2009-

10

2010-

11

2012-13 2013-14

Area

(Acre)

Prod (MT) Area

(Acre)

Prod

(MT)

Area

(Acre)

Prod

(MT)

Area

(Acre)

Prod

(MT)

Area

(Acre

)

Prod

(MT)

Area

(Acre)

Prod

(MT)

Area

(Acre)

Prod

(MT)

1. Bandarban 1180 2840 1306 3380 1207 3194 1334 3585 1381 3637 1415 2822 1423 3168

2 Chittagong 1990 9235 12346 11102 1664 7069 1704 7263 1731 7373 1745 7480 1851 7591

3 Comilla 190 295 153 290 156 321 152 331 164 389 135

4 Khagrachari 1890 6005 1979 5701 2071 5741 2145 6316 2108 6519 2160 6552 3239 10860

5 Noakhali 75 80 67 67 69 68 82 82 80 85 47 49 47 44

6 Rangamati 2615 8780 3368 14282 3600 15628 3671 15588 3791 16383 3873 16721 4095 17754

7 Sylhet 260 615 280 703 290 639 303 890 316 807 292 698 313 683

8 Dhaka 1000 1470 1029 1520 1012 1487 974 1398 1073 1611 1074 1687 1086 1804

9 Faridpur 255 235 149 180 135 182 121 172 89 172 52 91 54 78

10 Jamalpur 695 2630 709 2627 708 2746 712 2756 714 2252 687 2570 545 1984

11 Kishoreganj 380 735 404 818 382 742 377 730 392 757 352 704 358 720

12 Mymensingh 1125 2500 1335 2480 1134 2534 1136 2422 1143 2598 1120 2537 1109 2546

13 Tangail 2180 8980 2114 8312 1988 7394 2007 7527 2058 7778 1935 6864 1843 6286

14 Barisal - - - - - - - - - - 0 0 0 0

15 Jessore 260 655 285 695 257 639 270 727 295 803 283 724 264 699

16 Khulna 200 560 230 646 256 693 221 615 125 281 118 284 114 283

17 Kushtia 185 595 157 427 150 453 133 403 158 503 144 501 158 591

18 Patuakhali - - - - - - - - - - 0 0 0 0

19 Bogra 310 565 318 575 323 583 333 604 353 631 323 594 324 577

20 Dinajpur 1460 7415 1560 8522 1499 7393 1433 6736 4691 6334 1172 3785 1160 3563

21 Pabna 185 365 179 321 167 315 159 303 161 320 161 333 167 340

22 Rajshahi 235 555 243 593 235 582 230 550 234 515 170 366 179 396

23 Rangpur 3935 8215 5058 13805 4979 14196 4906 15843 4692 14582 4836 13173 5019 16799

BANGLAD

ESH

20605 63325 23269 77046 22282 72608

22403 74841 22527 74380 22094 68855 23472 77035

66

Annex 13: Monthly and yearly average wholesale price of local and imported ginger of Bangladesh Monthly Average Wholesale Price

(Per Quintal/Taka)

Name of

Commodity

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg

Ginger Local 2009 4228 4193 4550 4838 5139 6004 5978 6467 6882 5467 5506 5425 5390

Ginger

Import

,, 4843 4625 4499 4236 4321 5311 5426 6157 6854 7257 7445 7143 5676

Ginger Local 2010 5,843 5,929 6,409 7,456 8,341 9,417 10,453 10,786 11,505 10,178 9,441 7,940 8642

Ginger

Import

,, 7,361 7,384 7,350 8,137 8,398 9,491 10,570 10,360 11,668 12,247 13,570 11,883 9868

Ginger Local 2011 7,183 6,831 6,517 6,572 6,710 6,692 6,725 7,258 6,450 5,570 6,020 5,401 6494

Ginger

Import

,, 9,577 7,860 7,051 6,684 6,574 6,558 6,876 6,526 5,918 5,942 5,993 4,931 6708

Ginger Local 2012 4,226 4,567 4,452 4,638 4,825 5,153 5,776 6,202 6,737 7,089 6,102 6,046 5484

Ginger

Import

,, 5,395 5,238 4,715 4,728 5,111 5,415 5,701 5,283 5,272 5,348 5,131 5,216 5213

Ginger Local 2013 6,133 6,690 6,587 8,034 10,614 10,534 11,700 13,287 13,534 13,408 12,070 11,729 10360

Ginger

Import

,, 6,374 7,529 6,603 6,994 8,385 7,762 8,604 11,944 12,848 12,233 12,625 12,952 9571

Ginger Local 2014 9,838 9,641 10,609 14,267 13,788 16,599 16,358 15,023 15,307 14,513 12,607 - 13505

Ginger

Import

,, 12,82

4

11,29

7

11,990 15,240 14,875 17,301 16,255 14,913 14,986 14,717 10,714 - 14101

A Market Study of Nepalese Ginger and Its Derivative Products in India...

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