Acknowledgements -...

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

Submitted to: FAO-Nepal

Prepared by:

ANSAB-NepalP. O. Box: 11035, Kathmandu, Nepal

Ph:+977-14497547, 4478412Fax: +977-1-4476586

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ContentsAcknowledgements...................................................................................................................vAcronyms and Abbreviations................................................................................................viExecutive Summary...............................................................................................................vii1. 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...............................................................42.1 Production........................................................................................................................................... 4

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

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

3. Ginger Industry in Nepal...............................................................................................103.1 Production......................................................................................................................................... 10

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

4. Ginger Industry in India...............................................................................................194.1 Production......................................................................................................................................... 19

4.2 Trade....................................................................................................................................................22

4.3 Rules and regulation for importation in India..................................................................28

4.4 Status and prospects of Nepali ginger in Indian markets............................................30

5. Ginger Industry in Bangladesh.....................................................................................325.1 Production......................................................................................................................................... 32

5.2 Trade....................................................................................................................................................33

5.3 Rules and regulation for importation in Bangladesh.....................................................37

5.4 Status and prospects of Nepali ginger in Bangladesh....................................................37

6. Conclusion and Ways Forward.....................................................................................406.1 Summary of market observations..........................................................................................40

6.2 Major constraints observed.......................................................................................................41

6.3 Ways forward...................................................................................................................................42

References...............................................................................................................................45Annexes...................................................................................................................................47

Annex 1: Brief on ginger, its derivatives and their usage..........................................................48

Annex 2: Quality Standards for Export..............................................................................................50

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Annex 3: Codex standard for ginger (CODEX STAN218-1999)..............................................52

Annex 4: Top 10 countries in terms of ginger production quantity.....................................56

Annex 5: Top 10 countries in terms of ginger production area.............................................56

Annex 6: Varieties of ginger in India..................................................................................................56

Annex 7: Market arrival of ginger in Azadpur market................................................................58

Annex 8: Agmark standards of ginger classification...................................................................59

Annex 9: List of Importer from Bangladesh....................................................................................60

Annex 10: List of importers in India...................................................................................................62

Annex 11: Organization and individuals visited............................................................................63

Annex 12: Region wise production and area of ginger in Bangladesh from 2006/7 to 2013/14.......................................................................................................................................................... 66

Annex 13: Monthly and yearly average wholesale price of local and imported ginger of Bangladesh................................................................................................................................................ 67

List of TablesTable 1 Trade indicators of major importing countries of ginger worldwide............................7Table 2 Trade indicators of major exporting countries of ginger worldwide............................8Table 3 List of major market centres in five Development Regions of Nepal........................12Table 4 Ginger processing capacities and types of products in various districts of Nepal......18Table 5 Trend of ginger production in various Indian states...................................................20Table 6 Ginger cultivars grown in different states/union territory..........................................21Table 7 Major country of ginger export by India in 2011/12 and 2012/13..............................26Table 8 Major importing partner countries of India.................................................................27Table 9 Trend of ginger production in various regions of Bangladesh....................................32Table 10 Import values of ginger in Bangladesh from different countries..............................36Table 11 Summary of quality features of various types of ginger traded in Dhaka................37Table 12 Summary of the markets overviews..........................................................................40

List of FiguresFigure 1 Trend of area and volume of production of ginger......................................................4Figure 2 Trend of production quantity of top 10 ginger producing countries...........................5Figure 3 Trend of ginger production area of top 10 countries...................................................6Figure 4 Trend of total world import value of ginger................................................................7Figure 5 Production trend of ginger in Nepal..........................................................................10Figure 6 Marketing channel of ginger in Nepal.......................................................................12Figure 7 Producer price trend of Nepali ginger in USD/MT...................................................13

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Figure 8 Trend of wholesale price of fresh and dried ginger in Kathmandu and Nepalgunj in 2014..........................................................................................................................................13Figure 9 Export volume and value trend of ginger from Nepal...............................................14Figure 10 Share of various forms of ginger in total ginger export from Nepal in 2013..........15Figure 11 Export quantity of ginger from Kakarbhitta customs..............................................15Figure 12 Ginger exports from major customs point...............................................................16Figure 13 Ginger import trends in Nepal.................................................................................17Figure 14 Export and import value comparison of ginger in Nepal........................................18Figure 15 Trend of production and area of ginger in India......................................................19Figure 16 Comparison of India’s production and import from Nepal in various years...........21Figure 17 Trend of yearly total market arrival of ginger in India............................................22Figure 18 Total market arrivals of ginger in various major cities in months of 2014.............23Figure 19 Trend of yearly average wholesale price of ginger in India....................................24Figure 20 National average wholesale price and total market arrival of ginger in various months of 2014.........................................................................................................................24Figure 21 Trend of ginger export from India...........................................................................25Figure 22 Export of different forms of ginger from India in 2012/13.....................................25Figure 23 Import trend of ginger by India from 2003/04 to 2012/13......................................26Figure 24 Import value of ginger in India in 2012-13 (USD million).....................................27Figure 25 Trend of ginger import in India from Nepal............................................................28Figure 26: Sack being cut for quality inspection.....................................................................30Figure 27: Indian ginger variety...............................................................................................31Figure 28: Various dry ginger varieties available in Delhi market..........................................31Figure 29 Trend of ginger production and cultivated area in Bangladesh...............................32Figure 30 Price trend of local and imported ginger in Bangladesh..........................................34Figure 31 Price trend of local and imported ginger in Bangladesh in various months of 2014..................................................................................................................................................34Figure 32 Trend of quantity and value of ginger imported by Bangladesh.............................35Figure 33 Forms of ginger imported in Bangladesh in 2013...................................................35Figure 34 Export of ginger to Bangladesh from Nepal............................................................36

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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. 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 Pradeep Maharjan, CEO, AEC/FNCCI, and 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.

Our gratitude goes to the informants of various government agenciesincluding: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

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Thapa, Arjun (FAONP), 24/04/15,

Agreement was done with ANSAB as an Institution. ANSAB should make acknowledgement for the contributor including study team members.

Acronyms and AbbreviationsAEC Agro Enterprise CentreANSAB Asia Network for Sustainable Agriculture and BioresourcesASTA American Spice Trade AssociationBIS Bureau of Indian StandardsCIF Cost, Insurance and FreightESA European Spice AssociationEU European UnionFAO Food and Agriculture OrganizationFOB Free On BoardFSSAI Food Safety and Standards Authority of IndiaGCP Ginger Competitiveness Projectha Hectare INR Indian RupeesITC International Trade CentreL/C Letter of CreditMoAD Ministry of Agricultural Development MoCS Ministry of Commerce and SupplyMRL Maximum Residue LevelMT Metric tonNEAT Nepal Economic Agriculture and TradeNGPTA Nepal Ginger Producers and Traders AssociationNPR Nepalese RupeesNSCDP Nepal Spice Crop Development ProgramPFA Prevention of Food AdulterationSAWTEE South Asia Watch on Trade, Economics and EnvironmentSNV Netherlands Development OrganizationSPS Sanitary and PhytosanitaryTBT Technical Barriers to TradeTEPC Trade and Export Promotion CentreUSD United States DollarVDD Vegetable Development Directorate

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Executive SummaryGinger 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 isthe 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, whichhas 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 percentwas in powdered form. India has remained the major importing partner with 99% 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

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trade practices, the total volume of ginger being exported is estimated to be more than double of the official figure. Informal trade has been increasingdue to non-tariff barriers,which include various difficulties and added costs in obtaining import permits and certificates of PFA, value limitations in clearing the consignments and the overall cost reducing attitudes of traders. Other barriers include:lack offormal 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 centreswith 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 Indiawith 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 trendin the total market arrival of ginger in major market places of India with fluctuating suppliesinsome 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 exportvalue. 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 ofgrading mechanisms and varying quality (i.e. smaller pieces, fibrous, and brown in colour)resulting in

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lower prices for Nepalese ginger. The large market size, the increasing demand of ginger 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 gingergrowing 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 importsin 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 theAct, 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 countrycountries 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 Methodology1.1 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 Nepalhas 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 throughcommunity-based enterprise oriented solutions. ANSAB is the pioneer in developing andapplying new approaches to promote natural products-based enterprises and value-chaininterventions in Nepal. With its exemplary track record, competent team and wider networks,ANSAB has designed and successfully completed several related projects including similar valuechain studies of commercially important products with tangible results on the ground. It hasalso provided different expert services to stakeholders working in Nepal and other neighbouring countries.

This report consists of analyses onthe global ginger market, marketing of Nepali ginger in the domestic market and its trade to India and Bangladesh. Further, the report analysesginger 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 hasanalysedthe 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 oflaws, rules, regulations and technical measures governing trade, with the goalof measuring the effects of regulationson 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 inIndia 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. Theginger industry was analysedat the global level as well as more specifically in India and Bangladesh. The rules and regulatory requirements and standards required toexport in India and Bangladesh wereassessed. 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 wereconsulted 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 officesin 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 Agriculturewere 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 coverallrealities of Nepal and the markets in India and Bangladesh.

1.5 Organization of the studyThe 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 fifthchapters also present prospects of exporting ginger in these countries as well as perspectives from thetraders. 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 GingerGinger 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

2. Global Ginger Industry and Nepal’s PositionThe production and consumption of ginger is steadily increasing worldwide. In this chapter, the global trend of production and trade and Nepal’s position along withrequired 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 2003and reached up to 2.14 million MT in 2013.However, the annualgrowth rate of areaharvestedis 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 asteady increase in the global average productivitywith an annual yield growth rate of 7.86 per cent from 2003 to 2013. The global yield, which was 3.72MT 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 percent, China 20 percent) of the world’s total production. Nepal is in the third position with ashare of 12 percent of the total world production.

Figure 1Trend ofarea 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 2Trend of production quantity of top 10 ginger producing countries

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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 areexperiencing 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 (). The detailed table of area of production of these countries is presented in Annex 5.

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Figure 3Trend of ginger production area of top 10 countries

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2.2 Trade

At the global level, ginger is mostly traded in fresh, dried and powdered forms. Other products of ginger arepreserved andturned into oils and oleoresins. Nepal mostly tradesfresh ginger but some quantityof driedginger is also traded, mostlyfrom 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, 573,942MTof 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 percentin the traded ginger value ().In 2012, the average unit value of imported ginger was USD 716/MT and in 2013 it increased to USD 1170/MT.

Figure 4Trend of total world import value of ginger

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

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Source: ITC, 2014

Japan has been the top importer of ginger (mostly in fresh and preserved) withashare 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 1Trade indicators of major importing countriesof ginger worldwide

Importing countries

Trade IndicatorsValue

imported in 2013 (USD ‘000)

Quantity imported in 2013

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 100Japan 100102 67148 1491 7 1 -3 14USA 80792 57533 1404 10 9 52 11.3

Netherlands 63621 37075 1716 21 30 94 8.9Bangladesh 46052 65478 703 3 15 98 6.5Germany 38073 12608 3020 21 19 16 5.3UAE 36262 31914 1136 4 8 121 5.1Pakistan 35335 62145 569 -6 -1 60 5Malaysia 34525 21404 1613 3 -8 81 4.8UK 30270 19596 1545 -1 -2 54 4.2Saudi 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 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 2Trade indicators of major exporting countriesof ginger worldwide

7

Exporters

Trade Indicators

Value exported in 2013 (USD

thousand)

Quantity exported in 2013

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 100China 399885 380138 1052 2 6 53 61.7Netherlands 56827 30157 1884 21 17 54 8.8Thailand 33383 40048 834 3 -5 53 5.2India 27008 19935 1355 26 30 -37 4.2Nigeria 20125 12969 1552 32 25 26 3.1Indonesia 14909 22472 663 22 9 998 2.3Ethiopia 12553 11416 1100 11 1 -23 1.9Lithuania 12001 5081 2362 54 60 197 1.9Germany 9302 2419 3845 32 33 48 1.4Peru 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 exportingpartner 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 consumptionof 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 increasedconsumption.

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), 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.

8

Codex alimentarius2 standard is available as an international practice for ginger. It presents provisions onquality, 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 world wide 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.

2The 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.

9

3. Ginger Industry in NepalThis chapter provides information on the production and trade status of ginger in Nepal. The chapter also discussesinformal trade and constraints due to non-tariff barriers.

3.1 ProductionGinger is one of the major spice crops traditionally grown in the middle mountain areas of Nepal for thegeneration of cash incomesto 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 haof cultivation area and 235,033 MTof production in 2012/13 (NSCDP, 2014). In Nepal, ginger is mostly grown in middle-mountainous areasthroughout the country.

The production trend reveals an increasing area and quantity of ginger in the last five years (from 2008 to 2012). Figure 5 revealsthat ginger production hasincreased 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 percent) followed by the Western Development Region with 57,260 MT(24.4 percent) in 2012/13. Similarly, the Mid-western Development Region, Central Development Region and Far-western Development Regionshave 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-WesternDevelopment Region is the highest with 14.29 MTof 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 andKaski(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 around

10

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’splantation. 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 agriculturalactivities usually includes: land preparation, plantation, FYM/compost application, mulch collection and placement, timely weeding and harvesting. Mostly local materials and household labourersare 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 ungradedand 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 isexported. 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(). Usually following marketing channel is observed in ginger sector of Nepal.

11

85% 15% 10% 99%

1%50%40%

Farmers

Collectors/Road-head traders

District traders

Exporters/Processors

Commission Agents/Importers

Indian Wholesalers

Indian Retailers

Local Wholesaler

Local Retailer

Wholesalers/Importers(Abroad)

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 farmersgrow 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 3List of major market centres in five Development Regionsof Nepal

SN Development region Major markets1 Eastern Dhulabari, Dharan, Biratnagar2 Central Hetauda, Birgunj, Kathmandu3 Western Butwal, Bhairawa4 Mid-western Tulsipur, Nepalgunj5 Far-western Dhangadhi, Mahendranagar

Source: NEAT, 2011

12

Price trend

The producer price trend of ginger reveals high fluctuations (Figure 7). From2003 to 2012, the price had reached its highest in 2005 and then declined until 2009. Afterwards, the price increased until2011with a slight decrease in 2012.

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

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

100

200

300

400

500

600

700

800

900

Years (AD)

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). Figure 8 shows thatthe price of ginger inKathmandu 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 in 2014

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

50

100

150

200

250

300

350

400

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

NP

R/k

g

Source: ANSAB, 2014

Export

Ginger is one of the prioritized export commoditiesfor the Nepal Trade Integration Strategy (NTIS, 2010). Nepal exported 35,907 MT of ginger in 2013, valuing USD 8.78 million

13

(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

2009 2010 2011 2012 2013 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

-

10,000

20,000

30,000

40,000

50,000

60,000

Qty (MT) Value (USD '000)

Year (AD)

USD

'000

MT

Source: TEPC, 2014

With a majority ofginger 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 Nepalbut 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)3thus 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

14

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

8446.46799999991; 96%

349.077; 4% 2, 0.02%

Fresh (in USD '000)Dried (in USD '000)Powder (in USD '000)

Source: TEPC, 2014

Figure 11represents exports from Mechi customs as recorded by NGPTA during amajor export seasonof 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 thesemonths. The practice is not usual in the western part of Nepal.

Figure 11Export quantity of ginger from Kakarbhitta customs

Apr/May

May/Jun

Jun/Jul Jul/Aug Aug/Sep

Sep/Oct

Oct/Nov

Nov/Dec

Dec/Jan

Jan/Feb

Feb/Mar

Mar/Apr

0

100

200

300

400

500

600

700

2011./12 2012/13 2013/14

Tru

cklo

ad

Source: NGPTA, 2014

Ginger in eastern partsof the country is mostly exported via Kakarbhitta and Birgunjborders 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.

15

Figure 12Ginger exports from major customs point

Bhairawa Mechi Birgunj Biratnagar Nepalgunj0

5000

10000

15000

20000

25000

0

100

200

300

400

500

600

700

800

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

MT

NPR

(in

mill

ion)

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 throughthis 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 in Sonauli, border city in India, for conducting PFA test.

Non-tariff barriers and informal trade

When comparing the official data for export and production, the export volume seems to be around 27 percent of the total production. When considering domestic consumption and general trade practices, total volume of exportsis 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 barrierssuch as difficultiesand added costs in obtaining the import permit and certificate of PFA4,value limitations in clearing the consignments and both side traders'attitude of reducing associated trading costs. According to tradersin export points, Indian import permitsare usually issued to Indian import agents,thus incurring some added expenses towards the agents. Similarly, due to PFA test requirementsthat need to be conducted in the Central Food Laboratory situated in Kolkata or Ghaziabad, the duration for holding the consignment in the custom can beas long as 5-7 days or even more. Product freshness is threatened with such a long stay resulting innegative consequences with the quality of ginger as well as added expensesassociated with storage.

Similarly, in order to export ginger, Indian plant quarantines and customauthorities at the custom points are onlyallowedto clearconsignment valued at maximumNPR 160,000 (USD 1623).A higher valued consignment can be cleared with the countersign from anAssistant Commissioner stationed in: Siliguri in the case of Panitanki custom point (Kakarbhitta) and Lucknow in the case of Rupediya custom point (Nepalgunj) resulting in higher costsfor documentationdue to distance and time factors. 4Prevention of Food Adulteration Act, India

16

Because of such technical problems, the values recorded at custom officesdo 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 mentionedthat due to technical difficultiesin getting permission for a consignment valued abovethe ceiling amount, reduced size and price of consignmentswere declared to the concerned authorities.

It is an open secret that some ginger being exported is unwashed that possibly containssoil materials.This is important to note due to the fact that Indian quarantine rulesdo 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 2004citing the reason of Nepaliginger being contaminated with soil. This caused an approximate loss of NPR1.6 billion(Rijal, 2011).

Owing to overall long processes and difficultiesin 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 gingerthroughthese companies. Similarly, no formal banking channelis 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 clearanceagents 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 producersand exporters of ginger, it needs to import ginger especially during offseason. The import data show sharplyincreasing trend of ginger imports in terms of volume and value in year 2012 and 2013.

Figure 13 Ginger import trends in Nepal

2009 2010 2011 2012 2013 -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Qty (tonnes) Value (USD '000)

USD

'0

00

ton

ne

s

Source: TEPC, 2014

China is the leading supplier of ginger to Nepal. In 2013, import from China to the total import to Nepal was 71percent. Similarly, India is the second major partner sharing for 17

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 percent of ginger imported is in fresh form, whereas 3 percent is in dried and powdered form. The processed ginger is mainly coming from India.

Export and Import comparisonWhen 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, whichwasdiscussed earlier.

Figure 14 Export and import value comparison of ginger in Nepal

2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Export Value (USD)Series1

Year (AD)

Source: TEPC, 2014

Present Processing capacity of NepalThe 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 4Ginger processing capacitiesand types of products in various districts of Nepal

Place Processing capacity/Day RemarksSurkhet 8.2 MT Process organic gingerKailali 3 MT Washed ginger; run by a cooperative; Kapilvastu 3-5 MT Washed ginger, slice, powder and ginger paste;

Run by Annapurna OrganicGodavari Aroma 2 MT Washed ginger and ginger oilJhapa (GCP) 72 MT Washed ginger; currently underconstruction. Jhapa Very low amount Washed ginger; currently closedPhikkal, 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.

18

4. Ginger Industry in IndiaIndia 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 amountof 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 ProductionTime 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 26percent(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

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13*

2013/14*

2014/15 e

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Production Quantity Production Area

Year (AD)

'000

Ton

nes

'000

Ha

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

19

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 / Year2007-08 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 NATotal incl. others 775439 831067 708256 913890 924417

Source: Spice board of 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 ise mostly distributed to nearby markets of Orissa, Andhra Pradesh, Bihar and Chhatisgarh. It is seen that the increasing trend of ginger production in India has an inverse relationship with India's ginger import from Nepal ().

20

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

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-20130

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

41,729 35,939 36,644 19,887 22,54760,378

775,439 831,067

708,256

913,890 924,417

682,630

Import from Nepal Indian production

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

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 remaining20 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 TuniArunachal Pradesh ShillongBihar Desi and DorabhanyaGujarat Local types named after the localitiesHaryana and Punjab Local types named after the localitiesHimachal Pradesh Himachal No. 1, SG 666 (Dhariga local), SG 645 and NaragJammu and Kashmir Himachal No. 1Karnataka Waynad, Manathodi, Narasapatam, Thaiguppan and KarakkalKerala Kuruppampadi, Waynad local, Valluvanad, Maran, Nadia,

Maran/Lodi, Ernad, Thodupuzha, Rio-de-Janeiro, JamaicaMadhya Pradesh Local ginger types found in Tikkamgarh, Chindwara and Baster

districtsMaharashtra Local typesManipur Shing type, Thingpuri and ShingtamMeghalaya Nadia, Poona, Rio-de-Janeiro, Waynad, Thingpuri and MaranMizoram Thingpuri, Maran and Rio-de-JaneiroNagaland Rio-de-JaneiroOrissa Kuruppampadi, Waynad types, Local types viz., Kuduli, Laxipur,

Turia Junagarh, Raikia, Suprapha and SuruchiSikkim Gurubathane, Bhaisey, Nadia, Rio-de-Janeiro and ThingpuriTamil Nadu Rio-de-Janeiro, Maran, NadiaTripura Himachal No. 1, Local types

21

Uttar Pradesh Local types named after the localitiesWest Bengal Gurubathan, Smbuk-A, Turuksadan, Malli, Rio-de-Janeiro, Thingpuri,

Maran, Tura and Bombay DesiSource: 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 marketIn 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.

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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

50000

100000

150000

200000

250000

300000

350000

400000

450000

Year (AD)

Ton

ne

s

Source: National Horticulture Board, India, 2015

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

22


2000

4000

6000

8000

10000

12000

14000

16000To

nnes


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.

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, 30per 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 truck loads of ginger exported in 2013/14from 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 pricesare very unstable in India. 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

23

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

1000

2000

3000

4000

5000

6000

7000

Years (AD)

INR

/q

uin

tal


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 20National average wholesale price and total market arrival of ginger in various months of 2014


5000

10000

15000

20000

25000

30000

35000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Total arrival Avg. wholesale price

ton

ne

s

INR

/Q

uin

tal


ExportIndia itself is one of the major exporting countries,with its share in the total global ginger export valuedat 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 () in response to production (Table 5). The export declined substantially in 2012/13 dueto overall low production that year.

Figure 21 Trend of ginger export from India

24

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

-

10,000

20,000

30,000

40,000

50,000

60,000

In TonnesIn USD (in 000)

Source: Department of Commerce, Government of India, 2014

Major export products include: fresh, dry, and powderedginger, 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

Fres

h

Dried unblea

ched

Dried blea

ched

Powder

Ginger n

es in

cl drie

d

Oleore

sins

Other

s0

2

4

6

8

10

12

14

5.14

12.36

3.11

8.37.27

8.32

2.49

Forms of ginger

Expo

rt v

alue

(in

mill

ion

USD

)


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,

25

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 MT2011-12 2012-13 % Growth 2011-12 2012-13 % Growth

1 Bangladesh 4.97 4.75 -4.41 13,062.24 8,753.86 -32.982 USA 8.24 5.47 -33.63 4,303.35 2,730.76 -36.543 Spain 2.2 4.07 84.75 808.08 2,075.61 156.864 Morocco 3.58 1.87 -47.8 1,361.33 1,051.05 -22.795 UK 2.33 1.86 -20.14 733.64 856.86 16.86 Saudi Arab 4.22 1.47 -65.21 1,675.60 784.14 -53.27 Egypt 1.76 1.3 -26.02 728.02 770.23 5.88 Vietnam 0.96 0.99 3.52 376.34 610.01 62.099 Iran 0.29 0.79 169.34 150.65 607.4 303.210 UAE 5.29 0.84 -84.06 2,249.78 552.19 -75.46

Total including others 55.74 36.18 -35.09


ImportDespite 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.

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

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

-

5,000

10,000

15,000

20,000

25,000

Import quantity Import value

MT

In U

SD ('

000)


Imports peaked during 2012/13,when there was a decreasein 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).

26

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

Fres

h

Dried u

nbleach

ed

Dried b

leach

ed

Powder

Ginge

r, nes

incld

. Drie

d

Ginge

rbre

ad an

d like

Ginge

r Oil

Oleore

sins0

2

4

6

8

10

12

14 13.27

5.07

0.750000000000007

0.021.28

0.13 0.11 0


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 commonlyimported to India (Table 8).

Table 8 Major importing partner countries of India

S.N. CountryValues in USD Million Quantity in thousands

2011-12 2012-13 % Growth 2011-12 2012-13 % Growth1 Nepal 5.95 14.51 143.84 22,546.83 60,377.65 167.792 Nigeria 4.9 4.18 -14.59 1,615.47 2,781.87 72.23 China 1.24 0.5 -59.97 305.5 187 -38.794 Djibouti 0.46 3485 Ethiopia 0.98 0.29 -70.79 274.95 209 -23.996 Myanmar 0.73 0.23 -68.82 305.34 186 -39.087 Japan 0.12 19.998 Tanzania 0.09 229 New Zealand 0.01 2810 Thailand 0.01 1.27 Total 14.3 20.4 42.71 25,048.09 64,160.78 27.626


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.

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 directlyimpacted the ginger market and price in Nepal.

Figure 25 Trend of ginger import in India from Nepal

27

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

Year (AD)

Tonn

es


4.3 Rules and regulation for importation in IndiaFood 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.

Plant QuarantinePlant 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 on1 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 applicationscompleted 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.

28

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.

LabellingThe 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).

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.

29

Box 2: Box 2: Export procedure to India

Five samples are drawn from the consignment for PFA test. The consignment vehicle should stay in custom until the PFA test results are available.

The samples are sent to the nearest Central Food Laboratory for testing.

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.

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

Indian custom inspects the consignment and clears.

4.4 Status and prospects of Nepali ginger in Indian marketsIndia 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 tradersNepali ginger is mostly sold in Uttar Pradesh, Bihar West Bengal and Delhi, and partly in Rajasthan and Indor 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 idealfor 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 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.

Figure 26: Sack being cut for quality

30

Kochin Sagar Ethiopia Nigeria

Major competitor for Nepali ginger in IndiaNepali 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.

Figure 27: Indian ginger variety

31

5. Ginger Industry in BangladeshThis chapter provides overviews on ginger production and trade in Bangladesh, and analyses the current status and future prospects of Nepali ginger there.

5

5.1 ProductionGinger 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

2006/07 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

7,600

7,800

8,000

8,200

8,400

8,600

8,800

9,000

9,200

9,400

9,600

MT

ha

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 7591Khagrachari 6005 5701 5741 6316 6519 6552 10860Rangamati 8780 14282 15628 15588 16383 16721 17754Tangail 8980 8312 7394 7527 7778 6864 6286Dinajpur 7415 8522 7393 6736 6334 3785 3563Rangpur 8215 13805 14196 15843 14582 13173 16799Others 14695 15322 15187 15568 15411 14280 14182Total 63325 77046 72608 74841 74380 68855 77035

Source: Bangladesh Bureau of Statistics, Government of Bangladesh, 2014

32

5.2 Trade

Domestic tradeGlobally, Bangladesh is one of the major ginger consuming countries. Ginger is one of the most preferred spices in Bangladeshi food recipes, and its consumption isincreasing. It is 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 getsto consumers.

Ginger importers mostly sell imported ginger through commission agents on a taka (USD 0.013)/kgcommission 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 Retailersb) Importers Commission agents Wholesalers Retailers

Mainly two types of ginger varietiesnamely Chinese and localare 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 havemedium sized rhizomes with numerous fingers, an appealingscent 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 Bangladeshfrom November to February.

Local ginger is generally unwashed, dark brown in colour, containingmoderatefibreand smaller inrhizome 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.

33

Figure 30 Price trend of local and imported ginger in Bangladesh

2009 2010 2011 2012 2013 2014 -

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Year (AD)

USD

/MT

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 inJune/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

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

500

1,000

1,500

2,000

2,500

USD

/MT

Source: Department of Agriculture Marketing, Government of Bangladesh, 2014

ExportBangladesh 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 dueto its export of ginger powder to Saudi Arabia.

34

ImportBangladesh is the fourth largestimporter 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 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 32Trend 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, andit occupies more than 99 per cent of total import of Bangladesh (Figure 33).

Figure 33 Forms of ginger imported in Bangladesh in 2013

65396; 100%

83; 0%

Neither crushed nor ground (MT)Crushed or ground (MT)

Source: ITC, 2014

35

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 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 importedin 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

ExportersImport value (USD ‘000) by years2004 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 34,543Indonesia 1,777 269 70 307 2,660 2,439 1,969 0 0 8,478India 39 33 35 0 918 351 3,656 2,919 2,617 2,968Thailand 14 56 13 0 0 845 102 11,973 0 40Nigeria 0 11 0 0 858 0 0 0 2,759 0Singapore 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

2009 2010 2011 2012 2013 -

50.00

100.00

150.00

200.00

250.00

-

10.00

20.00

30.00

40.00

50.00

60.00

MT

USD

'00

0

Source: TEPC, 2014

5.3 Rules and regulation for importation in BangladeshThe 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

36

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 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 measuresbefore 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 tradersSince, 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 gingerThe 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 Summary of quality features of various types of ginger traded in Dhaka

Chinese Indian (Bangalore) Indian (Mizoram) Local (Bangladeshi)Features Features Features Features

37

Big rhizome size Whitish colour Less fibre High moisture

content Washed and cleaned Packaged in 20 kg

net bag

Small rhizomes but most piecesare more than 200 gm.

More fibre than Chinese

Good smell Washed and cleaned Shiny in colour Packaged in 45 kg net

bag

Similar to Bangalore but dark in colour

Unwashed Good smell More fibre Packaged in 45-60

kg gunny sack

Similar to Indian but has thinner rhizomes

Unwashed Good smell 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 reason 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. After the samples are accepted by the importers, further talks and negotiation 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

6.1 Summary of market observationsThe 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 acceptany 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)

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6.2 Major constraints observedMajor constraints of Nepalese ginger sector can be listed as below.

Constraints in production

Less competitive varieties:Thegingerrhizomes are small, dark brown in colour and are more fibrous. This has reduced the competitiveness of Nepali ginger and is therefore considered of lesser quality compared to South Indian and Chinese varieties.

Low commercial production practices: A majority of ginger farmers are presently practicing traditional agricultural practices in the production of ginger. There is lack of commercial approach to the farming. The farm innovation regarding market-based production of ginger is poor in specific to quality seed and cultivar selection and crop management. This has resulted in high production costs and low returns.

Constraints in post-harvest and processing

No quality consistency: Quality is degraded when products are mixedwith different varieties and different grade rhizomes and inert materials. Quality variation in the same batch is also high.

Lack of cleaning and washing facilities: The exported ginger is mostly unwashed and dirty in appearance. This has reduced the competitiveness of the Nepali ginger, and made it prone to export bans at various pointsin time, as export of ginger with soil is not allowed both in India and Bangladesh.

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

Local multiple taxation and extra-legal payment during 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 during 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 exporttax. Similarly, extra-legal payments to local gangs and interest groups and security during transportation have also increased the cost.

Difficulties in meeting sanitary and phytosanitary standards: Such is observed due to lack of proper infrastructure and facilities for cleaning, grading, processing, storage and transportation of ginger and of an accredited lab to issue PFA certificate.

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. Besides, the Indian plant quarantine and custom authorities at the custom point only allow clearance to aconsignment valued at maximumNPR 160,000 (USD 1623). Plant quarantine and custom clearance to a higher valued consignment requires countersign by the Assistant

41

Commissioner that added to the costs of documentation for exporting higher value consignment.

Low visibility: There are negative perceptions and low visibility of Nepali ginger both in India and Bangladesh.

Transit issues: The transit to Bangladesh is time consuming as it takes place at specified times during daylight hours with security escorts and 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 forwardTo increase Nepal’s competitiveness in the ginger sector and promote its export to 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 proposed 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 market 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.

ProductionIntroduction 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 developed and various varieties including Chinese and Indian high yielding varieties should be tested. Once successful, there should be multiplication of the varieties in various parts of the country and this will result in overall increases in productivity as well as quality of ginger grown in Nepal.

Farmers should be trained in good agriculture practice (GAP):Appropriate knowledge is crucial for greater quality and productivity across Nepal, and the farmers in wider areas 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.

Practising harvesting of mother rhizome:The mother rhizome is harvested during offseasons. 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 offseason in both the markets and to reap the benefit of higher prices, the mother rhizome harvesting practice would be thought to encourage throughout the country.

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Post-harvest and processingProper post-harvest handling is crucial for the reduction of losses and to ensure a better market position. The following areas of interventions are suggested in order to improve on postharvest activities and processing.

Proper cleaning, grading, sorting, and packaging: As the study revealed that cleaning, sorting, grading and proper packaging are pre-requisitesfor establishing better positions in Indian and Bangladeshi markets, the plan of action should be there to address these concerns. Apart from the plant protection acts, both countries do not allow ginger contaminated with soil into their country. Therefore, cleaning, sorting and grading activities should be taken seriously and practiced across Nepal.

Cleaning can also be done at the farmer’s level through the construction of small washing plants with two or three small tank systems. Similarly, if tanks are not present, cleaning can be done in vessels. Illustration of such technology can be seenin a detailed report of (NAIP, 2014). After cleaning, ginger should be sorted and graded properly. Various grades should be established and uniform graded ginger should be packaged separately.

Establishment of commercial washing centre: At a commercial level, bigger infrastructure for washing should be built. Table 4 presents a list of facilities that are already in use. These washing facilities will have either manual or automatic cleaning mechanisms and the capacities of such facilitieswill vary depending upon the availability of ginger in that particular region. These infrastructures require higher investments and can be built through a public-private partnership model. The on-going initiative of developing and running a washing centre in Dhulabari is highly commendable and it has to be replicated in other parts (esp. Butwal, Nepalgunj) after examining its performance.

Proper storage: Storage is important if we want to reap the benefits of offseason selling. Chinese ginger is available year round due to availability of cold storage, which provides them with higher prices. Storage can be built at a local level and either on a small scale or major market centres.

Establishment of modern technology dry ginger (sutho) making: The sutho making technology being used in Nepal is traditional, however these traditional methodsare mostly done manually and are therefore quite tedious. This reduces the quality of the ginger, making the scale of production very low. With modern drying technologies, the quality of the ginger can be improved with increased quantities. This will also prevent distress while sellingfresh ginger even when pricesdrop. The sutho making technology of Southern India can be adopted in Nepal.

B) Support in marketing and branding for better market penetration and market outreach

Nepal has been practicing traditional methods of marketing without following the 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: As an initiation, there is a need to identify exporters, who are interested in doing business with improved, quality ginger. Then they have to be linked withcountry suppliers of quality ginger and buyers stationed in Indian and Bangladeshi markets. In this process, there is a need for various capacity building activities for exporters including export procedures, preparation of documents and communication

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skills. Similarly, 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: To make the trade more formal and transparent, auction marketing could be an option for the ginger sector in Nepal. A suggestion is to develop a trial auction market close to a washing centre. Upon success of the auction market, it can be replicated in other major ginger marketing centres.

Collective branding of ginger: To haveimproved production sites at the commercial scale, collective branding could be a good option for promoting Nepali ginger in Indian and Bangladeshi markets along with others. The 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.

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 withrelevant Nepali exporters and importers to establish meaningful business relationships.

Establishment of a contact office in Bangladesh for a certain period: The market of Bangladesh is very unreliable and Nepali exporters are not comfortable with Bangladeshi counterparts because of a lack of trust in business. Therefore, for the initiation of marketing, a contact office for Nepali ginger should be established in Bangladesh. The office will take care of understanding the market, providing information on the traders in the market, establishing linkages between Nepali exporters and interested Bangladeshi importers, facilitating the deal making and ascertaining the fair transactions between the two parties. The centre can also list down some importers, which it believes are good to do business with. Upon the smooth operation of business, the contact office can be closed.

Support to establish accredited laboratory An accredited laboratory should be established so that the importing country (esp. India) recognizes PFA certificates issued in Nepal. The present lab should be upgraded and negotiations should be madewith the Indian government to recognize the tests done by the lab.

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ReferencesAbubaker, A. (2011). Ginger: A rhizome with high export value. Facts for you, April 2011.

Retrieved December 2014, from http://www.efymag.com/admin/issuepdf/Ginger_April%2011.pdf

ANSAB (2014). Price list. Asia Network for Sustainable Agriculture and Bioresources. Retrieved January 2015, from http://www.ansab.org/market-information/price-lists/

BBS. (2014). Bangladesh Bureau of Statistics, Government of Bangladesh.Dhaka, Bangladesh.

Camacho, H.; Brescia, A. (2009). The Australian Ginger Industry: Overview of Market Trends and Opportunties. Department of Employment, Economic Development and Innovation, The State of Queensland. Australia.

DoAM. (2014). Monthly Average Wholesale Price.Department of Agriculture Marketing, Government of Bangladesh.Dhaka, Bangladesh.

DoC. (2015). Export Import Data Bank. Department of Commerce, Government of India. Retrieved January 2015, from http://www.commerce.nic.in/eidb/

FAO. (2002). Ginger: Post-Production Management for Improved Market Access. Food and Agriculture Organization of United Nations. Retrieved December 2014, from http://www.fao.org/

FAOSTAT (2014).Statistics Division, Food and Agriculture Organization of United Nations. Retrived January 2015, from http://faostat3.fao.org/home/E

FAS. (2013). Food and Agriculture Import Regulations and Standards-Narrative, India Country Report. Global Agricultural Informatioin Network (GAIN). New Delhi, India

Gracy, C. e. (2013). Store and sell ginger after May 2014. Agropedia. Retrieved December 2014, from http://agropedia.iitk.ac.in/category/tags-agroblog/store-and-sell-ginger-after-may-2014

HVAP. (2011). Value Chain Analysis of Ginger Subsector in Nepal.Study conducted by ANSAB for High Value Agriculture Project in Hill and Mountain Area Project, Government of Nepal. Surkhet, Nepal.

ICAR. (2014). Ginger(Extension Pamphlet). Indian Institute of Spice Research, Indian Council of Agriculture Research. Kerala, India.

ITC. (2014). Trade Map. International Trade Center. Retrieved January 2015, from http://www.trademap.org

NAIP. (2014). A Value Chain on Ginger and Ginger Products.National Agriculture Innovation Project. Orissa University of Agriculture and Technology. Odisha, India.

NEAT. (2011). Value Chain/Market Analysis of Ginger Sub-sector in Nepal.Study conducted by ANSAB for Nepal Economic Agriculture and Trade Project, United States Agency

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for International Development. Kathmandu, Nepal.

NHB. (2015). Monthly Price & Arrival Report. National Horticulture Board. Government of India. Retrieved on January 2015, from http://www.nhb.gov.in/OnlineClient/MonthlyPriceAndArrivalReport.aspx

NSCDP. (2014). Annual Report 2012/13. Nepal Spice Crop Development Program, Government of Nepal. Lalitpur, Nepal.

Parthasarathy, V. e. (2011). Vision 2030. Indian Institute of Spice Research.Calicut, Kerala, India.

Ravi, R. (2012). Ginger prices set to rise on loweryeild from new crop. The Financial Expres, August 4, 2012.Retrieved December 2014, from http://archive.indianexpress.com/news/ginger-prices-set-to-rise-on-lower-yield-from-new-crop/983721/.

Rijal, I. P. (2011). Public support in the production and marketing system in agriculture with special focus on quarantine system.National Plant Quarantine Program, Government of Nepal.Lalitpur, Nepal.

TEPC. (2014). Export Import Data Bank. Trade and Export Promotion Center, Government of Nepal. Retrived January 2015, from http://www.efourcore.com.np/tepcdatabank/

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Annexes

47

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

Primary productFresh 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 isin 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 usuallythe 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

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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....

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Annex 2: Quality Standards for ExportIn 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 teststhat 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 GingerWhole 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 1.002 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 GingerTotal 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.

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

1 DEFINITION OF PRODUCEThis 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 smelland/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.2.1.1The 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 defectshowever may be allowed provided these do not affect the general appearance of the produce, the quality, the keeping quality and presentation in the package:

52

- 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

This class includes ginger thatdoes 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 defectshowever, may be allowed provided the ginger retains itsessential 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

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5.1 UNIFORMITY

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.

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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).

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

Countries 2008 2009 2010 2011 2012Global 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 2012Global 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 IndiaImproved 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 1.9Suruchi 11.6 218 23.5 3.8 10.0 2.0Suravi 17.5 225 23.5 4.0 10.2 2.1Himagiri 13.5 230 20.6 6.4 4.3 1.6IISR 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

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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

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Annex 7: Market arrival of ginger in Azadpur market

Quantity of fresh ginger arrival in Azadpur market from 2001 to 2013

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

20,000.0

40,000.0

60,000.0

80,000.0

100,000.0

120,000.0

Ton

ne

s

Monthly arrival of fresh ginger in Azadpur Market from 2009/10 to 2013/14

April May June July Aug Sep Oct Nov Dec Jan Feb Mar0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2009/10 2010/11 2011/12 2012/13 2013/14

Ton

ne

s

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 Bangladesh1. M/S S.M. Trading

35, Haricharan Roy Road, Dhaka-1100Cell: +88-01912674647 +88-01727547409Ph: +88-02-9552110Fax: +88-02-7175174Email: [email protected]: S. M. Rony

2. M/S B.M. International35, North Brook Hall Road,Dhaka-1100Cell: +88-01711536284 +88-01971536284Ph: +88-02-9552110Fax: +88-02-7175174Email: [email protected]: Milon Chandra Ghosh

3. M/S Al-Fayed Traders38/6/1, North Brook Hall Road, Lakuthi (River side)Dhaka-1100Cell: +88-01819429881 +88-01720800270Ph: +88-02-7122432Proprieter: Md. Mahabubul Alam

4. M/S Bhai BanijjalayHabib Mansion, 38/A, North Brook Hall Road (3rd Floor) Shambazar, Dhaka-1100Cell: +88-01716217986Ph: +88-02-9570172Email: [email protected]

[email protected]: Ranabir Roy

5. M/S Sigdar and SonsShambazar, Dhaka-1100Cell: +88-01675588516 +88-01711538163Proprietor: Musharraf Sigdar

6. M/S Surma TradersShambazar, Dhaka-1100Cell: +88-01815005339Proprietor: Judong Shah

60

7. M/S Risan Enterprises Shambazar, Dhaka-1100Cell: +88-01711530473Proprietor: Montu Miya

8. M/S Rajbhari BhandarShambazar, Dhaka-1100Cell: +88-01712103531Proprietor: Majed

9. M/S Sanjida Enterprise74 B. K. Das Road, Dhaka

10. M/S Arif Enterprise, Station para, Station Bazaar, Rohanpur, Gomastapur,Chapainawabganj, Rajshahi

11. M/S K/L Internation2/2-1, Chawk Circular Road, Dhaka-1211

12. M/S Shahnur Trade (BD) Ltd 205/B, Fakirapul, Motijeel, Dhaka

13. M/S Best solution15, DIT road, East Rampura Dhaka-1219

14. M/S Khalilullah5 No. Municipals Tank Road, Khulna

15. M/S Ideal Associates43/1 Moneshwar, ZigatolaDhaka-1209

61

Annex 10: List of importers in India1. M/S Varun Choudhary and Son

Shop NO. D-1409, New Vegetable MarketAzadpur, Delhi-33Cell: +91-9811009238Proprietor: Varun Chaudhary

2. M/S Radhika Enterprises536, Katra Ishwar BhawanKhari Baoli, Delhi-110006Cell: +91-9212367763, 9811167763Email: [email protected]: Sahil Kumar, Anil Kumar

3. M/S Dhirendra Prakash and CompanyA-1171, New Subzi Mandi, Azadpur, Delhi-110033Cell: +91-9818086862, 9891069594Proprietor: D.P. Sharma

62

Annex 11: Organization and individuals visitedName Company/

OrganizationPosition Address/Phone Type

Bangladesh

Md. Abdur Rashid

Department of Agriculture Marketing

Deputy Director (MI)

Ministry of Agriculture, Khamarbari, Farmgate, DhakaTel: +88-02-9113059

Government

Kbd. Md. Mozaffar Rahman

Plant Quarantine WingDepartment of Agricultural Extension

Deputy Director (Quarantine)

Ministry of Agriculture, Khamarbari, Farmgate, DhakaTel: +88-02-8127998

Government

Anarul Kabir Department of Agriculture Marketing

Deputy Chief Ministry of Agriculture, Khamarbari, Farmgate, DhakaTel: +88-02-9113059

Government

Md. Alamin Import DivisionTrading Corporation of Bangladesh

Kwaraan Bazar, DhakaCell: +88-01766535072

Government

Md. Abdul Haliu

Bangladesh Bureau of Statistics

Deputy Director

Agargoan, DhakaCell: +88-01717250549

Government

S. M. Rony S.M. Trading Proprietor 35, Haricharan Roy Road, Dhaka-1100Cell: +88-01912674647

Importer

Milon Chandra Ghosh

B.M. International

Proprietor 35, North Brook Hall Road,Dhaka-1100Cell: +88-01711536284

Importer

Md. Mahabubul Alam

Al-Fayed Traders

Proprietor 38/6/1, North Brook Hall Road, Lakuthi (River side)Dhaka-1100Cell: +88-01819429881

Importer

Ranabir Roy Bhai Bhai Banijjalay

Manager 38/A, North Brook Hall Road (3rd Floor) Shambazar, Dhaka-1100Cell: +88-01716217986

Importer

Musharraf Sigdar

Sigdar and Sons Proprietor Shambazar, Dhaka-1100Cell: +88-01675588516

Importer

Judong Shah Surma Traders Proprietor Shambazar, Dhaka-1100Cell: +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-110033Cell: +91-9810123534

Varun Chaudhary

Varun Choudhary and Son

Proprietor Shop NO. D-1409, New Vegetable MarketAzadpur, Delhi-33Cell: +91-9811009238

Importer

63

Sahil Kumar Radhika Enterprises

Proprietor Khari Baoli, Delhi-110006Cell: +91-9212367763, 9811167763

Importer

D.P. Sharma Dhirendra Prakash and Company

Proprietor Azadpur, Delhi-110033Cell: +91-9818086862,

Importer

NepalBikesh 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 KarnaBhanu Dutta MishraBudur 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

Vegetable Development Directorate

Purshottam Ojha

SAWTEE Sr. Consultant

Baluwatar, Kathmandu Regional NGO

Nijamuddhin Nepalgunj, Banke Exporter

64

Raina

Jamal Khan Plant Quarantine Office

Rupidhia, Banke Government

Nadeem Ahmed

Plant Quarantine Office (India)

Plant Quarantine Officer

RupaidhiaIndia

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 2013/14SL Name of

Zila/Region2006-07 2007-08 2008-

092009-10

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 31682 Chittagong 1990 9235 12346 11102 1664 7069 1704 7263 1731 7373 1745 7480 1851 75913 Comilla 190 295 153 290 156 321 152 331 164 389 1354 Khagrachari 1890 6005 1979 5701 2071 5741 2145 6316 2108 6519 2160 6552 3239 108605 Noakhali 75 80 67 67 69 68 82 82 80 85 47 49 47 446 Rangamati 2615 8780 3368 14282 3600 15628 3671 15588 3791 16383 3873 16721 4095 177547 Sylhet 260 615 280 703 290 639 303 890 316 807 292 698 313 6838 Dhaka 1000 1470 1029 1520 1012 1487 974 1398 1073 1611 1074 1687 1086 18049 Faridpur 255 235 149 180 135 182 121 172 89 172 52 91 54 7810 Jamalpur 695 2630 709 2627 708 2746 712 2756 714 2252 687 2570 545 198411 Kishoreganj 380 735 404 818 382 742 377 730 392 757 352 704 358 72012 Mymensingh 1125 2500 1335 2480 1134 2534 1136 2422 1143 2598 1120 2537 1109 254613 Tangail 2180 8980 2114 8312 1988 7394 2007 7527 2058 7778 1935 6864 1843 628614 Barisal - - - - - - - - - - 0 0 0 015 Jessore 260 655 285 695 257 639 270 727 295 803 283 724 264 69916 Khulna 200 560 230 646 256 693 221 615 125 281 118 284 114 28317 Kushtia 185 595 157 427 150 453 133 403 158 503 144 501 158 59118 Patuakhali - - - - - - - - - - 0 0 0 019 Bogra 310 565 318 575 323 583 333 604 353 631 323 594 324 57720 Dinajpur 1460 7415 1560 8522 1499 7393 1433 6736 4691 6334 1172 3785 1160 356321 Pabna 185 365 179 321 167 315 159 303 161 320 161 333 167 34022 Rajshahi 235 555 243 593 235 582 230 550 234 515 170 366 179 39623 Rangpur 3935 8215 5058 13805 4979 14196 4906 15843 4692 14582 4836 13173 5019 16799

BANGLADESH

20605 63325 23269 77046 22282 72608 22403 74841 22527 74380 22094 68855 23472 77035

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Annex 13: Monthly and yearly average wholesale price of local and imported ginger of BangladeshMonthly 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 5390Ginger 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 8642Ginger 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


,, 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


,, 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


,, 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 - 13505Ginger Import

,, 12,824

11,297

11,990 15,240 14,875 17,301 16,255 14,913 14,986 14,717 10,714 - 14101

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