a market study of nepalese ginger and its derivative products in india...
TRANSCRIPT
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A Market Study of Nepalese Ginger and Its Derivative
Products in India and Bangladesh
Submitted to: FAO-Nepal
Prepared by:
ANSAB-Nepal
P. O. Box: 11035, Kathmandu, Nepal
Ph: +977-14497547, 4478412
Fax: +977-1-4476586
February 2015
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Contents
Acknowledgements .................................................................................................................. v
Acronyms and Abbreviations ................................................................................................ vi
Executive Summary ............................................................................................................... vii
1. Introduction and Methodology ....................................................................................... 1
1.1 Background ................................................................................................................. 1
1.2 Objectives and Scope of the Study .............................................................................. 1
1.3 Approach and methodology ........................................................................................ 2
1.4 Limitations .................................................................................................................. 3
1.5 Organization of the study ............................................................................................ 3
2. Global Ginger Industry and Nepal’s Position ............................................................... 4
2.1 Production ................................................................................................................... 4
2.2 Trade............................................................................................................................ 6
2.3 Standards ..................................................................................................................... 8
3. Ginger Industry in Nepal .............................................................................................. 10
3.1 Production ................................................................................................................. 10
3.2 Trade.......................................................................................................................... 11
4. Ginger Industry in India ............................................................................................... 19
4.1 Production ................................................................................................................. 19
4.2 Trade.......................................................................................................................... 21
4.3 Rules and regulation for importation in India ........................................................... 27
4.4 Status and prospects of Nepali ginger in Indian markets .......................................... 29
5. Ginger Industry in Bangladesh..................................................................................... 31
5.1 Production ................................................................................................................. 31
5.2 Trade.......................................................................................................................... 31
5.3 Rules and regulation for importation in Bangladesh ................................................. 35
5.4 Status and prospects of Nepali ginger in Bangladesh ............................................... 36
6. Conclusion and Ways Forward .................................................................................... 38
6.1 Summary of market observations .............................................................................. 38
6.2 Major constraints observed ....................................................................................... 38
6.3 Ways forward ............................................................................................................ 40
References ............................................................................................................................... 44
Annexes ................................................................................................................................... 46
Annex 1: Brief on ginger, its derivatives and their usage .................................................... 47
Annex 2: Quality Standards for Export ............................................................................... 49
Annex 3: Codex standard for ginger (CODEX STAN218-1999) ........................................ 51
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Annex 4: Top 10 countries in terms of ginger production quantity ..................................... 55
Annex 5: Top 10 countries in terms of ginger production area ........................................... 55
Annex 6: Varieties of ginger in India .................................................................................. 55
Annex 7: Market arrival of ginger in Azadpur market ........................................................ 57
Annex 8: Agmark standards of ginger classification ........................................................... 58
Annex 9: List of Importer from Bangladesh ........................................................................ 59
Annex 10: List of importers in India.................................................................................... 61
Annex 11: Organization and individuals visited .................................................................. 62
Annex 12: Region wise production and area of ginger in Bangladesh from 2006/7 to
2013/14 ................................................................................................................................ 65
Annex 13: Monthly and yearly average wholesale price of local and imported ginger of
Bangladesh ........................................................................................................................... 66
List of Tables
Table 1 Trade indicators of major importing countries of ginger worldwide ............................ 7
Table 2 Trade indicators of major exporting countries of ginger worldwide ............................ 8
Table 3 List of major market centres in five Development Regions of Nepal ........................ 12
Table 4 Ginger processing capacities and types of products in various districts of Nepal ...... 18
Table 5 Trend of ginger production in various Indian states ................................................... 20
Table 6 Ginger cultivars grown in different states/union territory .......................................... 21
Table 7 Major country of ginger export by India in 2011/12 and 2012/13 ............................. 25
Table 8 Major importing partner countries of India ................................................................ 26
Table 9 Trend of ginger production in various regions of Bangladesh ................................... 31
Table 10 Import values of ginger in Bangladesh from different countries .............................. 35
Table 11 Summary of quality features of various types of ginger traded in Dhaka ................ 36
Table 12 Summary of the markets overviews.......................................................................... 38
List of Figures
Figure 1 Trend of area and volume of production of ginger...................................................... 4
Figure 2 Trend of production quantity of top 10 ginger producing countries ........................... 5
Figure 3 Trend of ginger production area of top 10 countries ................................................... 6
Figure 4 Trend of total world import value of ginger ................................................................ 7
Figure 5 Production trend of ginger in Nepal .......................................................................... 10
Figure 6 Marketing channel of ginger in Nepal ....................................................................... 12
Figure 7 Producer price trend of Nepali ginger in USD/MT ................................................... 13
Figure 8 Trend of wholesale price of fresh and dried ginger in Kathmandu and Nepalgunj in
2014.......................................................................................................................................... 13
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Figure 9 Export volume and value trend of ginger from Nepal ............................................... 14
Figure 10 Share of various forms of ginger in total ginger export from Nepal in 2013 .......... 15
Figure 11 Export quantity of ginger from Kakarbhitta customs .............................................. 15
Figure 12 Ginger exports from major customs point ............................................................... 16
Figure 13 Ginger import trends in Nepal ................................................................................. 17
Figure 14 Export and import value comparison of ginger in Nepal ........................................ 18
Figure 15 Trend of production and area of ginger in India ...................................................... 19
Figure 16 Comparison of India’s production and import from Nepal in various years ........... 20
Figure 17 Trend of yearly total market arrival of ginger in India ............................................ 22
Figure 18 Total market arrivals of ginger in various major cities in months of 2014 ............. 22
Figure 19 Trend of yearly average wholesale price of ginger in India .................................... 23
Figure 20 National average wholesale price and total market arrival of ginger in various
months of 2014 ........................................................................................................................ 23
Figure 21 Trend of ginger export from India ........................................................................... 24
Figure 22 Export of different forms of ginger from India in 2012/13 ..................................... 24
Figure 23 Import trend of ginger by India from 2003/04 to 2012/13 ...................................... 26
Figure 24 Import value of ginger in India in 2012-13 (USD million) ..................................... 26
Figure 25 Trend of ginger import in India from Nepal ............................................................ 27
Figure 26: Sack being cut for quality inspection ..................................................................... 29
Figure 27: Indian ginger variety .............................................................................................. 30
Figure 28: Various dry ginger varieties available in Delhi market .......................................... 30
Figure 29 Trend of ginger production and cultivated area in Bangladesh ............................... 31
Figure 30 Price trend of local and imported ginger in Bangladesh ......................................... 32
Figure 31 Price trend of local and imported ginger in Bangladesh in various months of 2014
.................................................................................................................................................. 33
Figure 32 Trend of quantity and value of ginger imported by Bangladesh ............................. 34
Figure 33 Forms of ginger imported in Bangladesh in 2013 ................................................... 34
Figure 34 Export of ginger to Bangladesh from Nepal............................................................ 35
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Acknowledgements
This study has been made possible through the generosity and support of many people,
organizations and institutions. The team is grateful to FAO Nepal for providing the
opportunity to conduct this study. In particular, we would like to thank Mr. Arjun Singh
Thapa, Programme Officer and Dr. Deepak Mani Pokhrel, Project Manager (GCP) for their
continuous support for the study. Thanks are due to Mr. Pradeep Maharjan, CEO,
AEC/FNCCI, Mr. Narendra Kumar Khadka, President and Hemanta Raj Bohora, Secretary of
Nepal Ginger Producers and Traders' Association for their support throughout the study. We
appreciate the support received from Mr. Osman Ghani from Bangladesh and Mr. Janak Raj
Rawal, Mr. Raj Grover and Mr. Rakesh Agrawal from India during our field visit.
We are thankful to Dr. Bhishma P. Subedi, Executive Director, ANSAB, for guidance and
valuable insights and inputs, to Dr. Kalyan Gauli for his participation in survey in India, to
Ms. Olena Bednarchuk, ANSAB volunteer for editorial support, and to administrative staffs
for the logistic supports. We are also thankful to, for sharing his practical experience.
Our gratitude goes to the informants of various government agencies including: Regional
Plant Quarantine Offices, Trade and Export Promotion Centre, Nepal Spice Crop
Development Program of Nepal; Department of Agriculture Marketing, Trading Corporation
of Bangladesh and Bangladesh Bureau of Statistics of Bangladesh; Plant Quarantine Office
and Custom Office of India; and various development organizations including SAMARTHA,
SAWTEE for their cordial company and sharing of valuable information with the study team.
We thank all those who have directly or indirectly provided support in executing field level
activities of the study, shared valuable information, and participated strongly in the meetings,
interactions and focus group discussions at the local, national to international levels.
Study Team
Puspa Lal Ghimire and Kabir Ratna Sthapit
ANSAB - Nepal
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Acronyms and Abbreviations AEC Agro Enterprise Centre
ANSAB Asia Network for Sustainable Agriculture and Bioresources
ASTA American Spice Trade Association
BIS Bureau of Indian Standards
CIF Cost, Insurance and Freight
ESA European Spice Association
EU European Union
FAO Food and Agriculture Organization
FOB Free On Board
FSSAI Food Safety and Standards Authority of India
GCP Ginger Competitiveness Project
ha Hectare
INR Indian Rupees
ITC International Trade Centre
L/C Letter of Credit
MoAD Ministry of Agricultural Development
MoCS Ministry of Commerce and Supply
MRL Maximum Residue Level
MT Metric ton
NEAT Nepal Economic Agriculture and Trade
NGPTA Nepal Ginger Producers and Traders Association
NPR Nepalese Rupees
NSCDP Nepal Spice Crop Development Program
PFA Prevention of Food Adulteration
SAWTEE South Asia Watch on Trade, Economics and Environment
SNV Netherlands Development Organization
SPS Sanitary and Phytosanitary
TBT Technical Barriers to Trade
TEPC Trade and Export Promotion Centre
USD United States Dollar
VDD Vegetable Development Directorate
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Executive Summary Ginger is one of the major spice crops of Nepal and is traditionally grown in the middle
mountain areas for cash income of rural communities. Not only has ginger been responsible
for fulfilling the domestic demand, ginger has also remained to be one of Nepal’s major
export commodities. It is one of the prioritized export commodities of the Nepal Trade
Integration Strategy (NTIS, 2010). Currently the export has been mainly limited to India.
This study tries to analyse the market situation and opportunities of Nepalese ginger in India
and Bangladesh along with a brief discussion on domestic and global perspectives.
Global ginger industry: Globally, the production and productivity of ginger is steadily
increasing with an average annual production growth rate of 6.25 per cent and annual yield
growth rate of 7.86 per cent from 2003 to 2013. However, during the same time period the
annual growth rate of area-harvested is negative (-1.50 per cent). India and China have
remained the major leading countries in production. Nepal is in the third position with the
share of 12 per cent of the total world production in 2012. The world import of ginger is
573,942 MT worth of USD 714 million. There has been an annual growth rate of 11 per cent
in terms of value and 8 per cent in terms of quantity from 2009 to 2013. Japan is the top
importer of ginger with a share of 14 per cent of the world’s ginger import followed by USA
and the Netherlands in 2013. Globally, Bangladesh is the fourth largest importer of ginger.
China has remained the major exporter of ginger for more than a decade. It is the major
exporting partner of top importing countries with 61.7 per cent of share in the world exports.
Currently, there is no single globally accepted standard for quality assurance of ginger;
however, the most popular codes in use are as set by the American Spice Trade Association
(ASTA) as well as the European Spice Association (ESA). Similarly, there are several
country specific standards that are derived by the Indian Spice Board.
Ginger industry in Nepal: In Nepal, ginger is being cultivated in 19,376 hectares of land
with production of 235,033 MT in 2012/13. The production of ginger has been increasing
with an average growth rate of 12 per cent. Ginger is produced in all the Development
Regions of Nepal with the major ginger production districts being: Ilam, Salyan, Palpa,
Nawalparasi, Morang, Doti, Kailali, Tanahu, Surkhet, Sindhupalchok, Syangja, Makwanpur,
Sindhuli and Kaski. Locally, there are two types of ginger known as nashe (with high fibre
content) and boshe (less fibre and thick rhizome), which are popular in the country. In
Pachthar and Tehrathum districts, there is another type of variety known as bhainse, which
has a larger rhizome.
The marketing channel usually consists of farmers, road head traders, district traders and
processors/exporters. While exporting to India, ginger is usually provided to Indian
commission agents, who work for 6-7 percent of sales commission. Domestic trade is mainly
focused in major urban areas as the rural people usually plant their required quantity of
ginger in their home gardens. Nepal exported 35,907 MT of ginger in 2013 with a value of
USD 8.78 million. In 2013, the share of fresh ginger was 96 per cent in total exports and only
4 percent in dried form of which 0.02 percent was in powdered form. India has remained the
major importing partner with 99 percent of total ginger exports in 2013. The major export is
done during the season of ginger harvesting, which is from Oct/Nov to Dec/Jan.
The informal trade of ginger is popular due to porous Indo-Nepal border and growing
inaccuracies during export invoicing. When considering domestic consumption and general
trade practices, the total volume of ginger being exported is estimated to be more than double
of the official figure. Informal trade has been increasing due to non-tariff barriers, which
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include various difficulties and added costs in obtaining import permits and a certificate of
test or analysis of food sample issued by regional food labs in India, value limitations in
clearing the consignments and the overall cost reducing attitudes of traders. Other barriers
include: lack of formal banking channels used in transactions while exporting to India, as
well as multiple taxation and other informal fees.
Nepal also imports some ginger especially during off-seasons. China has been the leading
supplier of ginger in Nepal. In 2013, imports from China to Nepal were at 71 per cent
followed by India with 17 percent of the total ginger import.
The present ginger processing capacity of Nepal is very limited with seven processing units
and with a processing capacity of approximately 90 MT/day. Most of them are washing
centres with the final product being washed ginger.
Ginger industry in India: India is the largest producer and consumer of ginger in the world.
In 2012/13, India produced 682,630 MT of ginger. Ginger is produced in almost all the states
of India with the major states of ginger production being: Karnataka, Orissa, Assam, Gujrat,
Meghalaya and Arunachal Pradesh. Cochin Ginger and Calicut Ginger are the two popular
varieties coming from India, mainly for their quality. The production in Karnataka is highly
fluctuating, and it can be analysed to have effects in Nepal’s export price, as the produce
from Karnataka is one of the major competitors of Nepali ginger. Out of the total Indian
production, about 30 percent is converted into dry ginger, 50 percent is consumed as green
ginger and the remaining 20 per cent used as seed materials.
From 2004 to 2014, there has been an increasing trend in the total market arrival of ginger in
major market places of India with fluctuating supplies in some years. Major ginger markets in
India are found in: Mumbai, Chennai, Hyderabad, Delhi and Bangalore. For Nepali ginger,
Delhi, Kolkotta, Lucknow and Patna are major markets. Nepali ginger is mainly used for
domestic consumption. Fresh ginger from eastern regions of Nepal goes mainly to Siliguri
and Kolkata, and comparatively a small quantity to Delhi, Amritsar, and Lucknow via
Naxalbari; and ginger from western regions of Nepal mostly goes to Gorakhpur, Lucknow,
Kanpur, Delhi and surrounding areas.
India itself is one of the major ginger exporting countries with a share of 4.2 percent in total
global ginger export value. India exports fresh, dry, powder and oleoresins with the highest
export value from dried ginger. The import of ginger in India is done mostly to fulfil
domestic demand whenever there is a fall in its domestic production. Fresh and dried are the
two major forms of imported ginger. In the year 2012/13, 71 per cent of Indian imports were
made up of Nepali ginger. For the import of ginger in India, the consignment must pass
through various procedures while in quarantine, including: food safety, labelling and
packaging laws, and other rules and regulation. The import consignments of plant and plant
products are inspected by the Plant Quarantine Authorities to verify the absence of infestation
by quarantined pests and diseases before being cleared for release by Customs. Similarly, The
Food Safety and Standards Act 2006 governs packaging and labelling, food additives,
product standards, licensing and registration of food businesses and maximum residue levels
of contaminants.
Due to open border, long socio-cultural intimacies and bilateral trade agreements, Nepal's
trading with India is easier than with other countries. However, Nepali ginger does not have
as good of a reputation and image as compared to Indian cultivars due to lack of grading
mechanisms and varying quality (i.e. smaller pieces, fibrous, and brown in colour) resulting
in lower prices for Nepalese ginger. The large market size, the increasing demand of ginger
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especially in the pharmaceutical sector and the special bilateral trade provisions have
provided good prospects to expand the market of Nepali ginger in India.
Ginger industry in Bangladesh: As ginger production in Bangladesh does not suffice its
consumption needs, Bangladesh needs to import (47 per cent of its estimated consumption) to
fulfil the domestic demand. Rangamati, Rangpur, Tangail, Chittagong, Khagrachhari and
Dinajpur are the important ginger growing districts of Bangladesh. The ginger production
trend in Bangladesh has become almost stable in the last 5 years with 77,035 MT of
production in 9,483 ha of land in 2012/13.
Two types of ginger varieties – Chinese and local – are dominant in Bangladeshi markets.
Local ginger is available in markets during the main harvesting seasons, whereas Chinese
ginger is found throughout the year. Chinese ginger occupies 75 per cent of the total share of
ginger imports in Bangladesh. Bangladesh also imports ginger from India, Indonesia,
Thailand and Nigeria. Indian varieties are mostly available during November to February.
Among the Indian varieties Bangalore and Hassan are popular in Bangladesh. The ginger
from Mizoram, which is also known as 'black ginger' due to its black appearance, is also
available. The supply of ginger from Indonesia and Thailand is highly fluctuating. Export
data of Nepal shows some ginger export to Bangladesh from 2009 to 2012 with highest
export of 225 MT in 2010, and no export in 2013. Bangladesh is the fourth biggest importer
of ginger worldwide in terms of value (USD 46 million) in the year 2013, which accounts to
be 6.5 per cent of the world’s total import value. The trend of import has been increasing. The
ginger is imported mostly in fresh form. The Plant Quarantine Act, 2011 provides Plant
Protection Wing authority to monitor imports, which includes search, seizure and forfeiture
of the import of plant and plant products. According to the Act, no importer shall, without an
import permit, import any plant or plant product, beneficial organism, soil or packing
materials to Bangladesh. Similarly, the Phytosanitary Certificate should, in addition, declare
that the consignments are free from sand, soil and extraneous materials.
Since, there is negligible import of Nepali ginger, most of the ginger traders in Bangladesh
are unaware of Nepali ginger. Those who are familiar with Nepali ginger considered it to be
of low to medium quality. The major competitors for Nepali ginger in Bangladesh are
Chinese, South Indian (Kerala and Karnataka), North Indian (Mizoram and Siliguri) and
Bangladeshi ginger. Others include ginger from Indonesia, Bhutan, Nigeria and Thailand.
Being one of the neighbouring countries and one of the largest importers of ginger in the
world, Bangladesh has good prospects for Nepali ginger.
Major constraints and ways forward: There are major constraints facing the ginger sector
in Nepal. Ginger in Nepal faces high levels of competition with greater quality ginger due to:
less competitive varieties, lack of commercial approach in farming, lack of quality
consistency, lack of cleaning and washing facilities, lack of proper drying technology, local
multiple taxation and extra-legal payment during transportation, difficulties in meeting
sanitary and phytosanitary standards, high cost of custom clearance, low visibility, and transit
issues.
To increase its competitiveness in the global ginger sector and promote its export to India and
Bangladesh, Nepal needs to work throughout the entire value chain. Quality and price are the
major factors to be considered to make the products competitive in these markets. A two-
pronged strategy is proposed for developing the market in India and Bangladesh for Nepali
ginger and ginger products. The strategy will focus on: i) assurance of quality production of
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ginger and its derivatives and ii) support in marketing and branding for better market
penetration and market outreach.
The suggested recommendations in quality production and postharvest handling are i)
introduction of appropriate variety as per the market preference ii) farmers should be trained
in good agriculture practice (GAP) iii) practicing harvesting of mother rhizome, iv) proper
cleaning, grading, sorting, packaging v) establishment of commercial washing centres vi)
proper storage vii) establishment of modern technology dry ginger (sutho) making.
Similarly, in order to support the marketing and branding for better market penetration and
market outreach the suggested recommendations need to be implanted: i) strengthening of
distribution channel ii) developing auction markets iii) collective branding of ginger iv)
facilitation/participation in business meetings, trade fairs and exhibitions v) establishment of
a contact office in Bangladesh for a certain period and vi) establishment of an accredited
laboratory for facilitating the trade.
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1. Introduction and Methodology 1.1 Background
Ginger Competitiveness Project: Enhancing Sanitary and Phytosanitary Capacity of Nepali
ginger Exports through Public Private Partnerships (MTF/NEP/068) is an action-oriented
public-private partnership project in Nepal. It has been supporting ginger farmers and traders
to improve quality of fresh ginger supply for export, enabling farmers to benefit from higher
prices in the main export market (India) and to enter other profitable markets. The project
partners are the Ministry of Agricultural Development (MoAD), Food and Agriculture
Organization (FAO) Nepal, Agro Enterprise Centre (AEC) and Nepal Ginger Producers and
Traders Association (NGPTA). In a request from FAO-Nepal, ANSAB Nepal has carried out
this study focussing on markets in India and Bangladesh.
ANSAB Nepal, a sister organization of Asia Network for Sustainable Agriculture and
Bioresources (ANSAB), is an independent, non-profit, civil society organization working in
South Asia. ANSAB is committed to biodiversity conservation and economic development
through community-based enterprise oriented solutions. ANSAB is the pioneer in developing
and applying new approaches to promote natural products-based enterprises and value-chain
interventions in Nepal. With its exemplary track record, competent team and wider networks,
ANSAB has designed and successfully completed several related projects including similar
value chain studies of commercially important products with tangible results on the ground. It
has also provided different expert services to stakeholders working in Nepal and other
neighbouring countries.
This report consists of analyses on the global ginger market, marketing of Nepali ginger in
the domestic market and its trade to India and Bangladesh. Further, the report gas highlighted
ginger trade related constraints including non-tariff barriers, and provides recommendations
to improve current practices and increase market penetration and niche marketing in specified
products.
1.2 Objectives and Scope of the Study
The objectives of the study are to:
Prepare an overview of the global ginger market from a trade perspective on Nepalese
fresh ginger and its processed products.
Conduct an analysis of rules and regulatory systems governing trade and marketing of
ginger with the goal of sustaining and expanding exports to India and Bangladesh.
Explore the demand for Nepalese fresh ginger and processed products in India and
Bangladesh to current and potential supply with identification of major importers and
their requirements.
Identify constraints including non-tariff barriers for export and identify stakeholders
those are most likely to be affected due to these barriers.
Provide a plan for implementing necessary changes in current practices for
compliance, and outline the strategies for market penetration and niche marketing.
The study has analysed the current market situation in India and Bangladesh for Nepali
ginger and its derivatives in the following three areas.
Analysis of ginger and derivatives trade in specified markets: An analysis of the
general ginger trade performance, volume and value of trade is carried out including
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identification of key traders and trading routes to accurately and effectively provide basic
data needed to evaluate current trading practices in Nepali ginger.
Analysis of demand and preferences of Nepali ginger and its derivatives: Study
demand for ginger products and their current and potential consumers followed by a
marketing strategy.
Analysis of ginger business and non-tariff measures (SPS and TBT): An analysis of
laws, rules, regulations and technical measures governing trade, with the goal of
measuring the effects of regulations on the Nepalese industry and determining changes
required for compliance.
1.3 Approach and methodology
The study used the rapid market analysis technique to assess the markets of Nepali ginger and
its derivatives especially focusing in India and Bangladesh. The study is based on the data
and information from primary and secondary sources. The methodology applied during the
study is discussed below.
Planning, desk research and review: Desk research and review was carried out to collect
and compile the relevant secondary information on production, trade and marketing of Nepali
ginger and its derivatives. The ginger industry was analysed at the global level as well as
more specifically in India and Bangladesh. The rules and regulatory requirements and
standards required to export in India and Bangladesh were assessed. ANSAB’s practical
knowledge and experiences in the ginger sector was used. Also, the information on traders,
manufacturers and exporters was collected and compiled through trade directories and
consultations with relevant stakeholders. Before field movement, a detailed checklist and
comprehensive field plan with contact details were developed.
Conduction of Field visits: To understand the domestic markets, visits were conducted in
Jhapa, Nepalgunj and Kathmandu. During the visits, market observation, Focus Group
Discussions and consultations were carried out with the traders and limited processors visible
in Nepal's ginger industry. Similarly, the custom agents and plant quarantine officials were
consulted while collecting the export related data and information. Some of the traders,
processors and relevant government authorities in India and Bangladesh were also consulted
in the study process.
In Delhi, Azadpur Mundi was visited for fresh ginger and Khari Bauli for dry ginger. In these
markets, interactions with commission agents, wholesalers and exporters were carried out.
Similarly, Indian custom and quarantine offices in Rupaidiya were visited and consulted with
the responsible officers.
In Dhaka, the market centres namely Sham Bazaar, Kwaran Bazaar and New Market were
visited. Interactions were conducted with importers, commission agents, wholesalers and
retailers in these places. Plant Quarantine and Agriculture Marketing offices under Ministry
of Agriculture were also visited. Similarly, visits were made to Trading Corporation of
Bangladesh, Bangladesh Bureau of Statistics and Export Promotion Bureau of Bangladesh.
Meetings and consultations were organized with Nepal Ginger Producers and Traders
Association (NGPTA), Trade and Export Promotion Centre (TEPC), Vegetable Development
Directorate (VDD), Nepal Spice Crop Development Program (NSCDP), South Asia Watch
on Trade, Economics and Environment (SAWTEE) and SAMARTHA, and their activities
and experiences in the ginger sector noted.
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Analysis and report preparation: Analysis of the compiled information was also
completed, and a draft study report prepared and shared with FAO-Nepal. After receiving the
comments and feedbacks, the final report was prepared and submitted.
1.4 Limitations
This study was completed mainly based on reviews and some visits and interactions. This
report therefore, does not cover all realities of Nepal and the markets in India and
Bangladesh.
1.5 Organization of the study The reporting on the study is divided into five chapters starting with an introduction and the
methodology. The second chapter briefs about the global ginger production, trade and
Nepal’s position in the global context. The third chapter deals with the production and trade
of ginger in Nepal and illustrates some major constraints in trade. An Indian ginger industry
analysis is presented in the fourth chapter, while the fifth chapter deals with the industry in
Bangladesh. Both, the fourth and the fifth chapters also present prospects of exporting ginger
in these countries as well as perspectives from the traders. Chapter six provides a conclusion
of the study and details the ways forward for tapping ginger export opportunities.
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Box 1: About Ginger
Ginger is originally from Southern China,
but now it is cultivated in many tropical
and subtropical regions of the world. The
economically harvested part of ginger is
its rhizome (underground stem/root),
which is mostly used as a spice and as a
preserve.
The key components of ginger include:
amino acids, shoagoals, gingerols, fibre,
essential oils and minerals and is,
therefore, used commonly as an
ingredient in a variety of products for its
flavour and medicinal value. The
warming effects of ginger bring relief
during cold and flu seasons. It is also
believed to have anti-inflammatory and
anti-allergy properties. Ginger is used
medically for the treatment of nausea
from morning sickness, upset stomach,
seasickness and motion sickness.
Ginger is available in various forms.
Primary products consist of fresh and
dried ginger, and secondary products
consists of such forms as candies,
preserve, essential oils, oleoresins, ginger
paste and nutraceuticals. The brief
summary of these various forms is
presented in Annex 1.
2. Global Ginger Industry and Nepal’s Position The production and consumption of ginger is
steadily increasing worldwide. In this chapter, the
global trend of production and trade and Nepal’s
position along with required global standards are
presented.
2.1 Production
Data shows that the global ginger production is
increasing each year with an average annual
growth rate of 6.25 per cent per annum (Figure 1)
from 2003 to 2013. The production was around
1.24 million MT in 2003 and reached up to 2.14
million MT in 2013. However, the annual growth
rate of area harvested is negative (-1.50 per cent)
from 2003 to 2013 (Figure 1). The area harvested,
which was around 334,935 hectare in 2003 reached
its maximum of 415,512 hectares in 2006 and was
336,440 hectares in 2013. The production trend
also reveals a steady increase in the global average
productivity with an annual yield growth rate of
7.86 per cent from 2003 to 2013. The global yield,
which was 3.72 MT per ha in 2003, reached to 6.36
MT per ha in 2013.
India and China have remained the major leading
countries in production of ginger in recent years
(Figure 2). In 2012, these two countries' production
comprised 54 percent (India 34 per cent, China 20 per cent) of the world’s total production.
Nepal is in the third position with a share of 12 percent of the total world production.
Figure 1 Trend of area and volume of production of ginger
Source: FAOSTAT, 2014
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Other leading countries in terms of production are Nigeria, Thailand, Indonesia, Bangladesh,
Japan, Cameroon and Taiwan. The detail table of production quantities of these countries is
presented in Annex 4.
Figure 2 Trend of production quantity of top 10 ginger producing countries
Source: FAOSTAT 2014
The production of ginger in India has increased significantly in 2011 compared to 2008 with
an increase of 80 percent in quantity. Similarly, China has also increased its production by 43
percent during the same period. Nepal has increased its production steadily during this time
frame with a 58 percent increase. Japan, Cameroon and Taiwan are also experiencing an
increasing trend of ginger production during 2008-2012 (Figure 2), whereas the other major
leading producers namely Nigeria, Thailand, Indonesia and Bangladesh are experiencing
declining trends.
The trend of ginger-harvested area (2008-2012) shows India to have a total of 47 percent
(150,000 ha) of the world’s total ginger cultivation area (322,157 ha), whereas Nigeria,
China, Indonesia have 15 percent, 12 percent and 8 percent respectively. Nepal is in the 5th
position in terms of area harvested for ginger with 6 percent of the world’s total ginger
cultivation area. India, China and Nepal have significantly increased its production area by
around 44 per cent, 43 percent and 45 percent respectively in 2012 compared to 2008.
Nigeria, Indonesia, Thailand and Bangladesh have negative growth in the harvested area,
whereas Taiwan, Japan and Cameroon have the positive growth (Figure 3). The detailed table
of area of production of these countries is presented in Annex 5.
Taiw
an
Cam
ero
on
Jap
an
Ban
glad
esh
Ind
on
esia
Thai
lan
d
Nig
eria
Nep
al
Ch
ina
Ind
ia
0 100000 200000 300000 400000 500000 600000 700000 800000
20
08
20
09
20
10
20
11
20
12
Qu
anti
ty (
MT)
Year (AD)
6
Figure 3 Trend of ginger production area of top 10 countries
Source: FAOSTAT, 2014
2.2 Trade
At the global level, ginger is mostly traded in fresh, dried and powdered forms. Other
products of ginger are preserved and turned into oils and oleoresins. Nepal mostly trades
fresh ginger but some quantity of dried ginger is also traded, mostly from the western part of
the country. In 2013, Nepal exported 35,506 MT of fresh ginger, 397 MT of dried ginger and
7 MT of powdered ginger (TEPC, 2014).
Globally, 573,942 MT of ginger is imported annually, worth USD 714 million1(ITC, 2014).
There has been an annual growth rate of 11 percent in terms of value and 8 percent in terms
of quantity from 2009 to 2013. The year 2012-2013 observed a growth rate of 35 percent in
the traded ginger value (Figure 4). In 2012, the average unit value of imported ginger was
USD 716/MT and in 2013 it increased to USD 1170/MT.
1 According to international standards, exports are valued FOB and imports are valued CIF
Taiw
an
Jap
an
Cam
ero
on
Ban
glad
esh
Thai
lan
d
Nep
al
Ind
on
esia
Ch
ina
Nig
eria
In
dia
0
50000
100000
150000 A
rea
(ha)
Year (AD)
7
Figure 4 Trend of total world import value of ginger
Source: ITC, 2014
Japan has been the top importer of ginger (mostly in fresh and preserved) with a share of 14
percent of the world’s ginger import (Table 1). Nepal has not exported ginger at a
commercial scale to Japan. In the years 2010, 2011 and 2012, Nepal exported USD 28,402,
USD 21,557 and USD 11,338 worth of ginger in dried and powder forms respectively to
Japan. No export to Japan was seen in 2013.
Table 1 Trade indicators of major importing countries of ginger worldwide
Importing
countries
Trade Indicators
Value
imported
in 2013
(USD
‘000)
Quantity
imported
in 2013
(MT)
Unit value
(USD)
Annual
growth
value
2009 to
2013 (%)
Annual
growth
quantity
2009 to
2013 (%)
Annual
growth
value
2012 to
2013 (%)
Share in
the
world
imports
(%)
The World 713796 573942 1244 11 8 35 100
Japan 100102 67148 1491 7 1 -3 14
USA 80792 57533 1404 10 9 52 11.3
Netherlands 63621 37075 1716 21 30 94 8.9
Bangladesh 46052 65478 703 3 15 98 6.5
Germany 38073 12608 3020 21 19 16 5.3
UAE 36262 31914 1136 4 8 121 5.1
Pakistan 35335 62145 569 -6 -1 60 5
Malaysia 34525 21404 1613 3 -8 81 4.8
UK 30270 19596 1545 -1 -2 54 4.2
Saudi Arabia 27120 28172 963 158 130 2 3.8 Source: ITC, 2014
Bangladesh is the fourth largest ginger importer in the world. China and India are the major
suppliers to Bangladesh. In the years: 2009, 2010, 2011 and 2012 Nepal has exported USD
8
35,036, USD 49,831, USD 5,280, and USD 4,900 worth of ginger respectively to
Bangladesh. There was no ginger exporting observed in 2013 to Bangladesh.
Table 2 Trade indicators of major exporting countries of ginger worldwide
Exporters
Trade Indicators
Value
exported
in 2013
(USD
thousand)
Quantity
exported
in 2013
(MT)
Unit value
(USD/unit)
Annual
growth
in value
from
2009 to
2013 (%)
Annual
growth in
quantity
from
2009 to
2013 (%)
Annual
growth in
value
from
2012 to
2013 (%)
Share
in the
world
exports
(%)
The World 647655 570873 1134 7 8 42 100
China 399885 380138 1052 2 6 53 61.7
Netherlands 56827 30157 1884 21 17 54 8.8
Thailand 33383 40048 834 3 -5 53 5.2
India 27008 19935 1355 26 30 -37 4.2
Nigeria 20125 12969 1552 32 25 26 3.1
Indonesia 14909 22472 663 22 9 998 2.3
Ethiopia 12553 11416 1100 11 1 -23 1.9
Lithuania 12001 5081 2362 54 60 197 1.9
Germany 9302 2419 3845 32 33 48 1.4
Peru 7994 3690 2166 36 35 98 1.2 Source: ITC, 2014
Only 8 percent of the total ginger exported is in crushed or grounded form. The annual world
export growth rate is 7 percent in value and 8 percent in terms of quantity from 2009 to 2013.
China has remained the major exporter in the trade of ginger for more than a decade. It is the
major exporting partner of top importing countries with 61.7 percent of shares in the world
exports. The Netherlands mostly re-exports the ginger. Thailand and India are the third and
the fourth largest exporters in terms of value (Table 2).
Nepal is not within the top 10 exporters in terms of value. However, in terms of quantity,
Nepal is placed in the eighth position, exporting 35,907 MT of ginger in 2013 worth USD
8.78 million (TEPC, 2014). Moreover, there is a significant informal trade of ginger to India
not formally recorded in trade statistics.
Global consumption trend
Globally, the consumption of ginger is increasing due to its human health benefits, increasing
population and peoples' changing food habits. Presently, many value added products are
developed such as ginger tea, ginger candy, ginger beer and ginger cough syrup contributing
to increased consumption.
2.3 Standards
No single global standard is found to check the quality of ginger; however, the most popular
codes in use are as set by American Spice Trade Association (ASTA) and European Spice
Association (ESA). Similarly, there are other country specific standards that are derived by
the Indian Spice Board. These standards are influenced by the standards set by the major
importing countries. There are various types of tests, which make up the range of
international standards. Some of them are cleanliness, ash level, acid insoluble ash (AIA),
9
volatile oil (V/O) determination, moisture content, microbial measures, pesticides level,
mycotoxin level and particle size. The details of these standards are presented in Annex 2.
Codex alimentarius2 standard is available as an international practice for ginger. It presents
provisions on quality, size, tolerance and presentation. It also provides standards for marking
or labelling, and determining contaminants and hygiene. Details are presented in Annex 3.
The International Federation of Organic Agriculture Movement (IFOAM) has established
organic production, processing and trading standards, and has tried to implement a worldwide
certification system. However, countries have varying standards and certification bodies such
as Japanese Agriculture Standards (JAS) of Japan, EU organic standards and US organic
standards. Details of organic standards are presented in Annex 2.
2 The Codex Alimentarius is a collection of internationally recognized standards, codes of practice, guidelines and other
recommendations relating to foods, food production and food safety. Its name is derived from the Codex Alimentarius
Austriacus.
10
3. Ginger Industry in Nepal This chapter provides information on the production and trade status of ginger in Nepal. The
chapter also discusses informal trade and constraints due to non-tariff barriers.
3.1 Production Ginger is one of the major spice crops traditionally grown in the middle mountain areas of
Nepal for the generation of cash incomes to rural communities. It plays an important role in
supporting rural livelihoods, including poor, marginal and disadvantaged communities. It is
estimated that over 66,000 families in Nepal have been cultivating ginger with a bigger
impact on smallholder farmers(NEAT, 2011). It has proved to be more lucrative and
beneficial than cereal crops.
Ginger is one of the most cultivated spice crops in Nepal, with around 19,376 ha of
cultivation area and 235,033 MT of production in 2012/13(NSCDP, 2014). In Nepal, ginger
is mostly grown in middle-mountainous areas throughout the country.
The production trend reveals an increasing area and quantity of ginger in the last five years
(from 2008 to 2012). Figure 5 reveals that ginger production has increased by 1.6 times in
2012 compared to 2008. During these years, ginger production had an annual average growth
rate of 12 percent (FAO, 2014).
Figure 5 Production trend of ginger in Nepal
Source: FAOSTAT, 2014
Production comes mainly from the Eastern Development Region of the country with 83,488
MT (35.5 per cent) followed by the Western Development Region with 57,260 MT (24.4 per
cent) in 2012/13. Similarly, the Mid-western Development Region, Central Development
Region and Far-western Development Regions have produced 39,346 (16.7%), 29,345
(12.5%) and 25,287 (10.8%) MT of the total ginger production in 2012/13. The productivity
of the Far-Western Development Region is the highest with 14.29 MT of production per
hectare. The major ginger producing districts in order of production quantity are: Ilam,
Salyan, Palpa, Nawalparasi, Morang, Doti, Kailali, Tanahu, Surkhet, Sindhupalchok,
Syangja, Makwanpur, Sindhuli and Kaski (NSCDP, 2014).
There are two major types of ginger grown in Nepal, locally known as nashe (rich in fibre)
and boshe (less fibre and thick rhizomes). The boshe varieties are mostly grown in and
11
around Makwanpur and Salyan areas whereas nashe is most common in other parts. Nuwakot
is another variety grown in Nepal known for being low in fibre content and proper rhizome
size. In Pachthar and Tehrathum, there is another variety, known as bhainse, which has big
rhizomes. According to traders, the bhainse variety is usually exported to Delhi. In
Kathmandu markets, the Nuwakot and Makwanpur varieties are more common. Due to less
fibre content, the boshe varieties are priced higher than nashe. Fibre content of ginger is said
to depend on soil type and climatic conditions; therefore, boshe varieties from one location,
when grown in other locations, can produce highly fibrous rhizome (HVAP, 2011).
The ginger cultivation in Nepal is done mostly in traditional ways with very few external
inputs and increased use of labour. Farmyard manure and compost are mostly used rather
than fertilizers. Farmers typically use locally available seed materials. Mostly, seeds are
produced by farmers themselves, and kept for the next season’s plantation. Farmers keep 20
to 25 per cent of their production to use as seeds for the next growing season. New growers
purchase seeds from neighbouring farmers or local markets. Lower productivity has been
reported from out of farm purchased seeds and that grown by new cultivators. Ginger farmers
in the mountains mostly preserved ginger seed from their last season crop, and rarely used
pesticides on ginger. It is becoming more common for seeds to be treated with fungicides
(and in some places with bio-pesticides). The sequence of agricultural activities usually
includes: land preparation, plantation, FYM/compost application, mulch collection and
placement, timely weeding and harvesting. Mostly local materials and household labourers
are used for all of these activities. Land is generally ploughed with bullocks or dug by
labourers. Post-harvest activities are limited to separation of rhizomes from stem and soil
removal from the rhizome. There is no practice of washing, sorting and grading of rhizomes.
The ginger is sent to markets ungraded and packaged in gunny bags.
3.2 Trade
A proportion of the total ginger produced in Nepal is consumed locally, but a majority of
domestic ginger is exported. Most commonly, local collectors visit the farmers to collect the
ginger or alternatively, farmers take their produce up to road-head traders. The road-head
traders are mostly located at places where transportation is available, and where the traders
act as consolidation points. They supply the goods to district traders, who in turn supply to
the exporters or national traders. The exporters mostly sell their goods in India via
commission agents, who take 6-7 per cent commission of the sales. Some exporters also sell
directly to importers (Figure 6). Usually following marketing channel is observed in ginger
sector of Nepal.
12
Figure 6 Marketing channel of ginger in Nepal
Source: ANSAB Nepal Field Study, 2014
National traders or exporters bear the cost of transportation to market centres, as well as
various other taxes and load/unload fees. Some exporters also have agents bringing goods
from farmers/local collectors/road head traders to their places. Exporters usually receive
ginger near borders, where they complete processes due to quarantine and custom clearances
and transfer it from Nepali trucks to Indian trucks (known as “palti”) for further transport
beyond border.
Domestic trade
In rural areas, most of the farmers grow ginger on their own land for domestic use (seed and
consumption) and sale in market. Major trading of ginger is done in urban areas, where
ginger is brought from various production pockets. Fresh ginger is the most traded product in
domestic markets.
Kathmandu is one of the major domestic markets for ginger. Most of the ginger in
Kathmandu is distributed through Kalimati Vegetable Wholesale Market. Nuwakot, Dhading
and Makawanpur are the major suppliers of ginger in Kathmandu. Other major domestic
markets include Birtamod/Dhulabari, Biratnagar, Dharan, Butwal/Bhairahawa, Tulsipur and
Nepalgunj. The major domestic markets for ginger by development regions are as listed in
Table 3. During off seasons, there is some ginger import from China to the domestic markets.
Table 3 List of major market centres in five Development Regions of Nepal
SN Development region Major markets
1 Eastern Dhulabari, Dharan, Biratnagar
2 Central Hetauda, Birgunj, Kathmandu
3 Western Butwal, Bhairawa
4 Mid-western Tulsipur, Nepalgunj
5 Far-western Dhangadhi, Mahendranagar Source: NEAT, 2011
Farmers
Collectors/Road-
head traders
District
traders
Exporters/
Processors
Commission
Agents/Importers Indian Wholesalers
Indian Retailers
Local Wholesaler
Local Retailer
Wholesalers/Importers
(Abroad)
85% 15% 10% 99%
1% 50% 40%
13
Price trend
The producer price trend of ginger reveals high fluctuations (Figure 7). From 2003 to 2012,
the price had reached its highest in 2005 and then declined until 2009. Afterwards, the price
increased until 2011 with a slight decrease in 2012.
Figure 7 Producer price trend of Nepali ginger in USD/MT
Source: FAOSTAT, 2014
During November to January (harvesting season) the price of ginger is at its lowest, while
from April to July the price is higher (Figure 8). The Figure shows that the price of ginger in
Kathmandu is higher than that in Nepalgunj. It is important to note that the price in
Kathmandu represents a local/domestic supply price whereas prices in Nepalgunj represents
export prices
Figure 8 Trend of wholesale price of fresh and dried ginger in Kathmandu and Nepalgunj
Source: ANSAB, 2014
0
100
200
300
400
500
600
700
800
900
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
USD
/MT
Years (AD)
0
50
100
150
200
250
300
350
400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
NP
R/k
g
Kathmandu (fresh) Nepalgunj (fresh) Nepalgunj (dried)
14
Export
Ginger is one of the prioritized export commodities for the Nepal Trade Integration Strategy
(NTIS, 2010). Nepal exported 35,907 MT of ginger in 2013, valuing USD 8.78 million
(TEPC, 2014). Nepal mostly exports ginger in fresh forms and partly in traditionally dried
forms, known as Sutho.
India has remained the major importing partner with 99% of the total ginger exported in
2013. The export trend (Figure 9) shows high fluctuation in the past five years with the
highest export recorded in the year 2012 and lowest in 2011.
Figure 9 Export volume and value trend of ginger from Nepal
Source: TEPC, 2014
With a majority of ginger being exported to India, which itself is the world’s largest producer
and leading exporter, the demand of India highly alters not only the supply of ginger from
Nepal but also the prices. It is noted that during the year 2012, India had a low production
due to reduced rainfall resulting in less yield from the new crop in Karnataka. In 2011
however, the price of Indian ginger had sharply decreased (as low as INR 7/kg due to high
supply from Karnataka)3 thus reducing the demand for ginger from Nepal.
The export mainly consists of fresh forms with a 96 percent share in total ginger exports. The
export of dried ginger makes up 4 percent of the total export, and 0.02 percent of exported
ginger is in powdered form.
3 Financial Express, 2013
2009 2010 2011 2012 2013
Qty (MT) 34,266 18,262 17,215 53,014 35,907
Value (USD '000) 6,153 4,581 4,887 12,452 8,798
-
10,000
20,000
30,000
40,000
50,000
60,000
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
MT
USD
'00
0
Year (AD)
Qty (MT) Value (USD '000)
15
Figure 10 Share of various forms of ginger in total ginger export from Nepal in 2013
Source: TEPC, 2014
Figure 11 represents exports from Mechi customs as recorded by NGPTA during a major
export season of ginger from Oct/Nov to Dec/Jan. As there are no cold storage practices
available for ginger in the country, its export during offseason is difficult. However, Jun/Jul
to Aug/Sep is also an important season for ginger export in eastern Nepal due to a practice of
harvesting mother rhizome (brunee) from standing crop during these months. The practice is
not usual in the western part of Nepal.
Figure 11 Export quantity of ginger from Kakarbhitta customs
Source: NGPTA, 2014
Ginger in eastern parts of the country is mostly exported via Kakarbhitta and Birgunj borders
whereas, that in western parts is exported via Nepalgunj and Bhairahawa borders. Only the
western parts of Nepal export dry ginger. There is no practice of making dry ginger in eastern
parts of Nepal. The following figure presents the export of ginger from various custom
points.
8446, 96%
349, 4% 2, 0.02%
Fresh (in USD '000)
Dried (in USD '000)
Powder (in USD '000)
0
100
200
300
400
500
600
700
Tru
cklo
ad
2011./12 2012/13 2013/14
16
Figure 12 Ginger exports from major customs point
Source: Department of Custom, 2014
The highest export was seen from Birgunj customs during 2012/13. From the interactions
with traders, it was found that due to low production rates in India, there was a high demand
for ginger in that year. It was also reported that some traders re-exported Chinese ginger
through this custom. In 2011, the Mechi custom had sent more ginger than other customs.
The export volume and value of ginger from Biratnagar and Nepalgunj customs have
comparatively remained lower. Traders from western region mention that it is rather easy to
export ginger from Bhairawa custom due to availability of extension centre of Central Food
Laboratory of India at Sonauli, border, for conducting test or analysis of sample food.
Non-tariff barriers and informal trade
When considering domestic consumption and general trade practices, total volume of exports
is estimated to be more than double of the official figure, due to the informal trade practices
across the porous Indo-Nepal border. The informal trade has been encouraged due to non-
tariff barriers such as difficulties and added costs in obtaining the import permit and a
certificate of test or analysis of food sample issued by regional food labs in India as per
provision of PFA4 Act and Rule, value limitations in clearing the consignments and both side
traders' attitude of reducing associated trading costs. According to traders in export points,
Indian import permits are usually issued to Indian import agents, thus incurring some added
expenses towards the agents. Similarly, due to test or analysis requirements of sample food
that need to be conducted in the Central Food Laboratory situated in Kolkata or Ghaziabad,
the duration for holding the consignment in the custom can be as long as 5-7 days or even
more. Product freshness is threatened with such a long stay resulting in negative
consequences with the quality of ginger as well as added expenses associated with storage.
Similarly, in order to export ginger, Indian plant quarantines and custom authorities at the
custom points are only allowed to clear consignment valued at maximum NPR 160,000 (USD
1623). A higher valued consignment can be cleared with the countersign from an Assistant
Commissioner stationed in: Siliguri in the case of Panitanki custom point (Kakarbhitta) and
4 Prevention of Food Adulteration Act, India
0
100
200
300
400
500
600
700
800
0
5000
10000
15000
20000
25000
Bhairawa Mechi Birgunj Biratnagar Nepalgunj
NP
R (
in m
illio
n)
MT
2010/11 (MT) 2011/12 (MT) 2012/13 (MT)
2010/11 (NPR in million) 2011/12 (NPR in million) 2012/13 (NPR in million)
17
Lucknow in the case of Rupediya custom point (Nepalgunj) resulting in higher costs for
documentation due to distance and time factors.
Because of such technical problems, the values recorded at custom offices do not reflect the
actual prices. For instance, the price of ginger recorded at Kakarbhitta custom remained the
same for the last five years despite a huge fluctuation in ginger price. The traders mentioned
that due to technical difficulties in getting permission for a consignment valued above the
ceiling amount, reduced size and price of consignments were declared to the authorities.
It is an open secret that some ginger being exported is unwashed that possibly contains soil
materials. This is important to note due to the fact that Indian quarantine rules do not allow
ginger imports with soil. Yet the rule is not effective to Nepali ginger. Some export of
unwashed ginger from Nepal has sustained as a great barrier in fetching high prices for
Nepali ginger as the country has no large scale washing facility, and there is no certainty that
India in future be allowing ginger in soil. One example of Indian ban on import of Nepali
ginger occurred for a few months in 2004 citing the reason of Nepali ginger being
contaminated with soil. This caused an approximate loss of NPR 1.6 billion (Rijal, 2011).
Owing to overall long processes and difficulties in documentation, ginger exports are
presently being conducted in the name of a few registered companies (3 to 5) at every custom
point. The traders export ginger through these companies. Similarly, no formal banking
channel is used in transactions while exporting ginger to India. The Indian importing parties
usually paid Nepalese ginger exporters in cash with Indian currency or as barter through
exports of other goods to Nepal. Multi-location based local government taxation by VDCs,
municipalities, DDCs and informal fees collected by security personnel and local interest
groups along transportation are also issues of concerns that escalated cost in ginger trade.
There is necessity of paying the informal fees via export/ import/ custom clearance agents
and service cost to the agents to clear the consignment, which further increases the cost of
consignment and is extra burden for the exporters.
Import
Though Nepal is one of the major producers and exporters of ginger, it needs to import ginger
especially during offseason. The import data show sharply increasing trend of ginger imports
in terms of volume and value in year 2012 and 2013.
Figure 13 Ginger import trends in Nepal
Source: TEPC, 2014
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
-
1,000
2,000
3,000
4,000
5,000
6,000
2009 2010 2011 2012 2013
MT
USD
'00
0
Qty (tonnes) Value (USD '000)
18
China is the leading supplier of ginger to Nepal. In 2013, import from China to the total
import to Nepal was 71 percent. Similarly, India is the second major partner sharing for 17
percent of the total ginger import in Nepal. Other countries where ginger is imported from are
Thailand, Ethiopia, Hongkong and Canada.
In total, about 97 per cent of ginger imported is in fresh form, whereas 3 per cent is in dried
and powdered form. The processed ginger is mainly coming from India.
Export and Import comparison When compared, the value of ginger import to Nepal is around 45-60 percent of the total
export value. Flaws exist in official export data because of under valuation and reduced
declaration of consignment volume, which was discussed earlier.
Figure 14 Export and import value comparison of ginger in Nepal
Source: TEPC, 2014
Present Processing capacity of Nepal The present ginger processing capacity of Nepal is very limited. Only few processing plants
have been established, and very little quantity of ginger is being processed. The list of ginger
processing infrastructure in Nepal is presented in Table 4 below.
Table 4 Ginger processing capacities and types of products in various districts of Nepal
Place Processing capacity/Day Remarks
Surkhet 8.2 MT Process organic ginger
Kailali 3 MT Washed ginger; run by a cooperative;
Kapilvastu 3-5 MT Washed ginger, slice, powder and ginger paste;
Run by Annapurna Organic
Godavari Aroma 2 MT Washed ginger and ginger oil
Jhapa (GCP) 72 MT Washed ginger; currently under construction.
Jhapa Very low amount Washed ginger; currently closed
Phikkal, Ilam Approx. 1 MT Ginger slice and powder; still not operated; run
by a cooperative. Source: SAMARTH, 2014 and ANSAB Nepal Field Study, 2014
The current processing capacity is not enough and further development of such infrastructure
is required for the production of quality ginger.
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013
Year (AD)
Import Value (USD)
Export Value (USD)
19
4. Ginger Industry in India India is the largest producer and consumer of ginger in the world. It is one of the major
exporters of ginger and its derivatives. It also imports a substantial amount of ginger from
other countries including Nepal. This chapter provides information on the production and
trade status of ginger in India, and rules and regulation there governing trade and marketing
of ginger and its derivative products. Also, this chapter provides an analysis on status and
prospects of Nepali ginger in Indian markets.
4.1 Production Time series data of ginger production in India from 2007/08 to 2014/15 reveal a fluctuating
trend with a decline in recent years. In 2012/13, ginger production (682,630 MT) declined by
26 percent (See Figure 15) compared to the preceding year 2011/12 (924,417 MT). It was the
same year, when there was a short supply of ginger in India and the price reached its peak of
INR 50 (USD 0.81) per kg for fresh ginger, whereas the year before the price was INR 7
(USD 0.11) per kg (Ravi, 2012). After the decrease in 2012/13, the production has remained
almost constant.
Figure 15 Trend of production and area of ginger in India
eestimated,
Source: Spice Board of India, 2014 and *National Horticulture Board, India, 2015
Ginger is produced in almost all of the states in India. Recently, the major states producing
ginger are Karnataka, Orissa, Assam, Gujrat, Meghalaya and Arunachal Pradesh. Most of the
time Karnataka has remained the largest ginger producing state since 2007-08; however, its
production declined substantially during 2011-12 resulting Orissa to be the top producing
state (Table 5).
In Karnataka, ginger is grown in about 29,000 hectares spread over Hassan, Coorg, Shimoga,
Chickmagalur, Bidar and Mysore districts. It is cultivated as a main crop as well as an
intercrop in plantations. Kerala used to be the top producer prior to 2006. Wayanad and the
surrounding areas in Kerala that accounted for the bulk of ginger production during the
nineties have seen ginger farming coming down rapidly due to labour shortages and higher
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13*
2013/14*
2014/15 e
Production Quantity 775439 831067 708256 913890 924417 682630 655060 655000
Production Area 123708 143861 142089 170957 155063 136250 132620 133000
0
20
40
60
80
100
120
140
160
180
0 100 200 300 400 500 600 700 800 900
1000
Ha
in '0
00
MT
in '0
00
Year (AD)
Production Quantity Production Area
20
input costs. Enterprising farmers from Kerala moved out to nearby places in Karnataka in
search of land and cheap labour(Gracy, 2013).
Cochin Ginger and Calicut Ginger from Kerala are popular in the world market for their
quality and speciality. Both ginger have volatile oil contents in the range of 1.9 to 2.2 per cent
and are characterized by a lemon-like aroma and flavour (which is more pronounced in
Calicut spice), low fibre content and high moisture content thereby commanding a premium
price.
Table 5 Trend of ginger production in various Indian states
Name of State Production in MT / Year
2007-08 2008-09 2009-10 2010-11 2011-12
Orissa 32720 33370 117720 126530 134980
Assam 107078 103915 107893 112548 121370
Karnataka 194229 273253 135031 168310 93486
Gujarat 48742 49504 47694 69581 70646
Meghalaya 52800 50256 54009 52922 54719
Arunachal Pradesh 47407 47181 49663 52304 54000
Uttaranchal 28782 31288 40418 41944 44011
Kerala 31726 30809 28603 33197 37130
Mizoram 56998 34290 31000 31000 34488
West Bengal 23137 23832 24128 24606 24854
Andhra Pradesh 14070 11684 16674 23054 21883
Sikkim 37743 40866 35970 35970 NA
Total incl. others 775439 831067 708256 913890 924417 Source: Spice board of India, 2014
Figure 16 Comparison of India’s production and import from Nepal in various years
Source: Spice Board of India and Department of Commerce, India 2014
The production of ginger in most of the states except Karnataka and Orissa is almost
constant. The production in Karnataka is highly fluctuating, and it can be analysed to have
effects in Nepal’s export price, as the produce from Karnataka is one of the major
competitors of Nepali ginger. The production in Orissa is also increasing tremendously in
recent years. The ginger from Orissa is mostly distributed to nearby markets of Orissa,
Andhra Pradesh, Bihar and Chhatisgarh. It is seen that the increasing trend of ginger
41,729 35,939 36,644 19,887 22,547 60,378
775,439 831,067
708,256
913,890 924,417
682,630
0
200,000
400,000
600,000
800,000
1,000,000
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
MT
Year
Import from Nepal Indian production
21
production in India has an inverse relationship with India's ginger import from Nepal (Figure
16).
Figure 16 compares India’s ginger production with its ginger import from Nepal, which is
very small. In the year 2012/13, the share of imports from Nepal to Indian production was 9
percent, and in the preceding year it was just 2 percent.
Out of the total Indian production, about 30 percent is converted into dry ginger, while 50
percent is consumed as green ginger and the remaining 20 percent used as seed materials. Dry
ginger is produced mainly in Kerala, a major share of which is exported(Abubaker, 2011).
The major types of ginger cultivars grown in various states of India are listed below.
Table 6 Ginger cultivars grown in different states/union territory
State Cultivars
Andhra Pradesh Local types viz. Medak and Tuni
Arunachal Pradesh Shillong
Bihar Desi and Dorabhanya
Gujarat Local types named after the localities
Haryana and Punjab Local types named after the localities
Himachal Pradesh Himachal No. 1, SG 666 (Dhariga local), SG 645 and Narag
Jammu and Kashmir Himachal No. 1
Karnataka Waynad, Manathodi, Narasapatam, Thaiguppan and Karakkal
Kerala Kuruppampadi, Waynad local, Valluvanad, Maran, Nadia,
Maran/Lodi, Ernad, Thodupuzha, Rio-de-Janeiro, Jamaica
Madhya Pradesh Local ginger types found in Tikkamgarh, Chindwara and Baster
districts
Maharashtra Local types
Manipur Shing type, Thingpuri and Shingtam
Meghalaya Nadia, Poona, Rio-de-Janeiro, Waynad, Thingpuri and Maran
Mizoram Thingpuri, Maran and Rio-de-Janeiro
Nagaland Rio-de-Janeiro
Orissa Kuruppampadi, Waynad types, Local types viz., Kuduli, Laxipur,
Turia Junagarh, Raikia, Suprapha and Suruchi
Sikkim Gurubathane, Bhaisey, Nadia, Rio-de-Janeiro and Thingpuri
Tamil Nadu Rio-de-Janeiro, Maran, Nadia
Tripura Himachal No. 1, Local types
Uttar Pradesh Local types named after the localities
West Bengal Gurubathan, Smbuk-A, Turuksadan, Malli, Rio-de-Janeiro, Thingpuri,
Maran, Tura and Bombay Desi Source: National Horticulture Board, India, 2011
Some of the prominent indigenous cultivars are Maran, Kuruppampadi, Ernad, Waynad,
Himachal and Nadia. Exotic cultivars such as Rio-de-Janeiro have also become very popular
among cultivators(ICAR, 2014). The improved varieties of ginger and their salient features
are given in Annex 6.
4.2 Trade
Domestic market
In India, the demand for fresh ginger is high as it is mainly consumed in fresh form and used
in vegetable dishes. Major ginger markets in India are Mumbai, Chennai, Hyderabad, Delhi
and Bangalore.
22
Figure 17 Trend of yearly total market arrival of ginger in India
Source: National Horticulture Board, India, 2015
Figure 18 Total market arrivals of ginger in various major cities in months of 2014
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.
The figure reveals that the Delhi market has the highest transaction for ginger among these
cities; however, the trade in Delhi fell substantially during the offseason (i.e. May-Aug).
Major sources of fresh ginger in Delhi are Karnataka, Sikkim/Darjeeling, Assam, Himachal
and Nepal. Karnataka used to trade 3,000 MT of ginger per month for the 8 months of high
arrivals. Delhi imports 600-750 MT per day from different parts of India including Nepal.
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MT
Year (AD)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
DELHI 9396 7231 5519 3051 2729 2110 2075 3002 6890 8266 10876 13583
KOLKATA 2979 2610 2728 2306 2941 3374 3994 3804 3750 3121 2962 4080
LUCKNOW 264 271 283 154 115 106 121 248 442 357 432 547
PATNA 450 382 312 232 253 260 274 335 347 350 530 542
0
2000
4000
6000
8000
10000
12000
14000
16000
MT
23
The Kolkata market shows the opposite trend with more transactions during June-August. It
might be due to the type of harvesting practices of mother rhizome during the period in
eastern part of Nepal and west Bengal.
Dry ginger is mainly sourced in India from its own production in Karnataka (Sagar), Kerala
and Assam, and some quantities from Nigeria and Nepal. The market share in the case of dry
ginger in Delhi is estimated to be 60 percent Indian, 30 per cent Nigerian, 5 percent Nepali
and 5 percent others.
The ginger imported from Nepal goes mainly for domestic consumption (Parthasarathy,
2011). Fresh ginger from eastern regions of Nepal goes mainly to Kolkata and Siliguri, and
comparatively a small quantity to Delhi, Amritsar, and Lucknow via Naxalbari (an Indian
city near Kakarbhitta border, where the ginger is washed and cleaned). According to traders,
out of 1800 truckloads of ginger exported in 2013/14 from Mechi custom, only 300 trucks
arrived in Delhi and surrounding areas. Fresh ginger from western regions of Nepal mostly
goes to Gorakhpur, Lucknow, Kanpur, Delhi and surrounding areas.
Price trend
Ginger prices are very unstable in India. Figure 19 shows fluctuating trends of ginger prices
from 2004 to 2014. In the years 2012 onward, ginger prices have increased substantially in
response to supply situations in the market and the production status.
Figure 19 Trend of yearly average wholesale price of ginger in India
Source: National Horticulture Board, India, 2015
The Figure 20 reveals the national average wholesale price and the arrival of ginger in the
market in various months of 2014. The price is highest during offseason when there is the
lowest arrival of ginger, and the lowest during harvesting season.
Figure 20 Average wholesale price and total market arrival of ginger in various months of 2014
0
1000
2000
3000
4000
5000
6000
7000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
INR
/qu
inta
l
Years (AD)
24
Source: National Horticulture Board, India, 2015
Export
India itself is one of the major exporting countries, with its share in the total global ginger
export valued at 4.2 percent. The export trend is fluctuating with a slight decline from 2005 to
2009 and thereafter a sharp rise during 2010/11 and 2011/12 (Figure 21) in response to
production (Table 5). The export declined substantially in 2012/13 due to overall low
production that year.
Figure 21 Trend of ginger export from India
Source: Department of Commerce, Government of India, 2014
Major export products include: fresh, dry, and powdered ginger, which is based on quantity.
However, dried ginger had the highest export value followed by powder and oleoresins
(Figure 22). Similarly, ginger oil had a 5 percent share in the total ginger export. In ginger oil
and oleoresin trade, India dominated, holding 50 percent of the world’s trade(Abubaker,
2011). Thus, nearly 90 per cent of the total export value of ginger from India is in processed
form, which clearly indicates the high value addition being taken place in India. Indian spices
are also famous throughout the world.
Figure 22 Export of different forms of ginger from India in 2012/13
-
2,000
4,000
6,000
8,000
10,000
0
5000
10000
15000
20000
25000
30000
35000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
INR
/Qu
inta
l
MT
Total arrival Avg. wholesale price
-
10,000
20,000
30,000
40,000
50,000
60,000
In Tonnes
In USD (in 000)
25
Source: Department of Commerce, Government of India, 2014
The fresh ginger is mostly exported to Bangladesh. Around 88% of total fresh ginger
exported from India in 2012/13 arrived in Bangladesh. India, (especially Delhi) used to
export ginger to Pakistan. However, in recent years Pakistan is importing ginger from
Thailand. Dried ginger mostly goes to Spain, USA, Morocco and Arabian countries. Two per
cent of dried ginger was exported to Nepal in 2012/13. Powder ginger is mostly exported to
USA, UK, South Africa, Australia and other European countries. Similarly, the ginger oil and
oleoresins are also mostly exported to developed countries including USA, UK, South Africa,
Japan, Germany, Netherlands, China, Australia and South Korea. The major countries of
ginger export from India in 2011/12 and 2012/13 are provided in Table 7.
Table 7 Major country of ginger export by India in 2011/12 and 2012/13
S. N. Country Values in USD Million Quantity in MT
2011-12 2012-13 % Growth 2011-12 2012-13 % Growth
1 Bangladesh 4.97 4.75 -4.41 13,062.24 8,753.86 -32.98 2 USA 8.24 5.47 -33.63 4,303.35 2,730.76 -36.54 3 Spain 2.2 4.07 84.75 808.08 2,075.61 156.86 4 Morocco 3.58 1.87 -47.8 1,361.33 1,051.05 -22.79 5 UK 2.33 1.86 -20.14 733.64 856.86 16.8 6 Saudi Arab 4.22 1.47 -65.21 1,675.60 784.14 -53.2 7 Egypt 1.76 1.3 -26.02 728.02 770.23 5.8 8 Vietnam 0.96 0.99 3.52 376.34 610.01 62.09 9 Iran 0.29 0.79 169.34 150.65 607.4 303.2 10 UAE 5.29 0.84 -84.06 2,249.78 552.19 -75.46
Total including
others 55.74 36.18 -35.09 Source: Department of Commerce, Government of India, 2014
Import
Despite being the top producing country of ginger worldwide, India also imports a fair
amount of ginger. The import is done mostly to fulfil domestic consumption, and is high
whenever there is a fall in its domestic production. Figure 23 shows the import trend of
ginger by India from 2003/4 to 2012/13.
5.14
12.36
3.11
8.3 7.27
8.32
2.49
Fresh Dried unbleached
Dried bleached
Powder Ginger nes incl dried
Oleoresins Others
0
2
4
6
8
10
12
14
Forms of ginger
Exp
ort
val
ue
(U
SD in
mill
ion
)
26
Figure 23 Import trend of ginger by India from 2003/04 to 2012/13
Source: Department of Commerce, Government of India, 2014
Imports peaked during 2012/13, when there was a decrease in production, whereas imports
declined in the year 2010/11 and 2011/12 due to increase in production. Imports therefore
have a direct correlation with domestic production. Hence Nepal’s export to India, which is
its major export destination, is also determined by India’s domestic production.
In terms of quantity more than 90 percent of India’s ginger import is in fresh form. In terms
of value, the major imported forms of ginger are: fresh and dried (Figure 24).
Figure 24 Import value of ginger in India in 2012-13
Source: Department of Commerce, Government of India, 2014
Nepal is the major importing partner of India. Nepal occupied 71 percent of the total ginger
import by India in the year 2012/13. Another major country of import is Nigeria. Chinese
ginger is not as commonly imported to India (Table 8).
Table 8 Major importing partner countries of India
S.N. Country Values in USD Million Quantity in MT
-
5,000
10,000
15,000
20,000
25,000
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
In U
SD '0
00
MT
Import quantity Import value
13.27
5.07
0.75 0.02
1.28 0.13 0.11 0
0
2
4
6
8
10
12
14
USD
in m
illio
n
27
2011-12 2012-13 % Growth 2011-12 2012-13 % Growth
1 Nepal 5.95 14.51 143.84 22,546.83 60,377.65 167.79
2 Nigeria 4.9 4.18 -14.59 1,615.47 2,781.87 72.2
3 China 1.24 0.5 -59.97 305.5 187 -38.79
4 Djibouti 0.46 348
5 Ethiopia 0.98 0.29 -70.79 274.95 209 -23.99
6 Myanmar 0.73 0.23 -68.82 305.34 186 -39.08
7 Japan 0.12 19.99
8 Tanzania 0.09 22
9 New Zealand 0.01 28
10 Thailand 0.01 1.27
Total 14.3 20.4 42.71 25,048.09 64,160.78 27.626 Source: Department of Commerce, Government of India, 2014
Nepal plays a significant role in ginger imported by India; where almost all the fresh ginger is
imported from Nepal. Whereas, it only occupies nearly 50% share in dried ginger import.
Other dried ginger is mostly from Nigeria.
Figure 25 shows the import quantity of ginger from Nepal to India, which is directly
proportional to the total ginger import trends of India. The import of ginger from Nepal is
highly fluctuating. As 99% of Nepal’s ginger is exported to India, demand fluctuation in
India for ginger has directly impacted the ginger market and price in Nepal.
Figure 25 Trend of ginger import in India from Nepal
Source: Department of Commerce, Government of India, 2014
4.3 Rules and regulation for importation in India Food and agricultural products imported in India are governed by various laws under the
jurisdiction of multiple authorities of the government. The importing of ginger (especially
fresh ginger) should undergo several rules and regulations before the goods can reach
customers. Brief outlines of such rules and regulations are provided below.
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
MT
Year (AD)
28
Plant Quarantine
Plant import regulations are governed by the Plant Quarantine (Regulation of Import into
India) Order 2003, under the Destructive Insects and Pests Act, 1914. The Order was
published on 18 November 2003 with the purpose of prohibiting and regulating the imports
of agricultural articles into India. The order was emplaced on 1 January 2004, onward. The
implementing agency was the Directorate of Plant Protection, Quarantine and Storage under
the Ministry of Agriculture, Department of Agriculture and Cooperation.
The import consignments of plant and plant products are inspected by the Plant Quarantine
Authorities to verify the absence of infestation of quarantined pests and disease before being
cleared for release by Customs. Import permits are required for importing seeds/plant
materials for consumption, and are based on the applications completed by the importers. The
permit issuing authority is the Department of Agriculture and Cooperation under the Ministry
of Agriculture, Government of India.
Laws, rules and regulations on food safety
Food Safety and Standards Authority of India (FSSAI) governs laws, rules and regulations in
food safety. The Food Safety and Standards Act 2006, which was fully implemented in 2013,
is the parent law related to food safety and standards in India.
The regulation governs packaging and labelling, food additives, product standards, licensing
and registration of food businesses and maximum residue level of contaminants. The
Regulation stipulates, “...all food business operators, food processors, manufacturers,
exporters or importers shall ensure that the food s/he handles meets all the standards under
the FSSAI’s Food Safety and Standards (FSS) Regulation 2011.” All domestic food operators
including importers are required to have an FSSAI license to conduct business in India.
FSSAI does not require licensing of foreign companies to export food products to India
(FAS, 2013).
FSSAI has set maximum residue levels (MRLs) for pesticides, toxins and other contaminants.
MRLs set by Codex Alimentarius may be accepted for imported foodstuffs, if the subject
pesticides are not on the approved or banned lists of pesticides.
Labelling
The Food Safety and Standards Authority of India requires the following labelling standards:
- Product information must be printed on a label securely affixed to the package or printed
on the package itself,
- The label must be printed in English or Hindi (Devanagari script) languages.
- No false or misleading or deceptive representation shall be made which can create an
erroneous impression of the pre-packaged food in any respect, and
- Content of the label shall be clear, prominent, indelible, and readily legible by the
consumer.
Imported bulk food items sold in loose or unpackaged form must have an accompanying
certificate that specifies country of origin. However, there is currently no requirement to label
imported loose or unbranded products at the retail point of sale. Raw agricultural
commodities, spice mixes, condiments, non-nutritive products, alcoholic beverages, fruits and
vegetables, processed pre-packaged vegetables and fruits are exempted from nutritional
labelling requirements(FAS, 2013).
29
Packaging
The fruits and vegetable products can be packed in aseptic and flexible packaging material
having good grade quality conforming to the standards laid down by Bureau of Indian
Standards (BIS). All weights or measures are to be reported in metric units. The use of
materials such as polyvinyl chloride (PVC) is not allowed for packaging in most cities, due to
environmental concerns and waste disposal problems.
4.4 Status and prospects of Nepali ginger in Indian markets India has remained a traditional trading partner of Nepal. Due to an open border and since its
long socio-cultural intimacy and bilateral trade agreements, Nepal's trading with India is
easier than with other countries.
Nepali ginger as perceived by traders
Nepali ginger is mostly sold in Uttar Pradesh, Bihar West Bengal and Delhi, and partly in
Rajasthan and Indore as Marwari community preferred it.
However, Nepali ginger does not have as good of a reputation
and image as compared to Indian cultivars. Most of Indian
traders do not prefer Nepali ginger due to its poorer and
inconsistent quality. Nepali ginger according to the traders is
generally ungraded, consisting of smaller pieces and thus
receiving low prices. Secondly, the traders did not prefer
Nepali ginger despite its good flavour for its high fibre content
and brown colour (esp. dry finger), which is not considered
ideal for powdered ginger. Brown Nepali ginger is also not
suitable for pharmaceutical preparation.
There is also a lack of trust between Indian and Nepali traders. According to traders from
Box 2: Export procedure to India
The Indian Plant Quarantine issues the import permit mentioning quantity of ginger to be
imported. The import permit has validity of six months from the date of issue.
The exporter prepares consignment within approved limit of quantity and time.
The exporter prepares necessary documents and presents it to Nepalese Plant Quarantine.
The documents required are filled form with stamp, import permit, invoice by exporter
and certificate of origin issued by Nepalese Chamber of Commerce.
Nepalese Plant Quarantine issues Phytosanitary Certificate after inspection of the
consignment. Mostly visual inspection using magnifying glass is in practice. The
certificate should clearly declare the consignment's import permit number and additional
conditions of its being free from weed-seed and soil.
The Nepalese custom clears the consignment.
In Indian custom, samples are drawn from the consignment for test or analysis to be
conducted at designated regional food labs in India. The consignment vehicle should stay
in custom until the test results are available.
The Indian Plant Quarantine conducts the post entry inspection of the consignment by
drawing samples and examining visually. A higher level authority (Asst. Commissioner)
required for clearance, if the consignment value is above NPR 160,000
After meeting all the requirements and documents the consignment is cleared
Figure 26: Sack being
cut for quality
inspection
30
Delhi, Nepali traders do not send consignment as per the sample shown. Lack of sorting,
grading and cleaning is prevalent in Nepali ginger. Due to the lack of trust in terms of quality,
it is common for Indian traders in Delhi to open every sack of Nepali ginger for verification
of quality, while they randomly select and check only a few number of sacks in case of Indian
ginger coming from Bangalore. They also observed Nepali ginger occasionally as if the
ginger imported from China was repacked and re-exported.
Major competitor for Nepali ginger in India
Nepali fresh ginger has to compete with Indian varieties coming
especially from Karnataka in terms of quality. Dry ginger has
also to compete with supplies from south India including Cochin
and Sagar and that from Nigeria as well. The Indian varieties are
preferred mostly due to its white colour, big size and low fibre
content. Nigerian varieties are not as appealing, but are cheaper
in price compared to Nepali ginger. Figure 28 shows different
varieties of dried ginger sold in India.
Figure 28: Various dry ginger varieties available in Delhi market
Prospects for Nepali ginger
India, being the largest consumer of ginger worldwide, presents greater market
opportunities for Nepal. Nepal’s export to India occupied just two and eight percent of
India's estimated total market size (quantity) in 2011/12 and 2012/13, respectively.
Despite the quality concerns, almost all of the exportable Nepali ginger is exported there.
The Indian demand for ginger is increasing. The use of dried ginger in pharmaceuticals is
also increasing. According to a study conducted by the Indian Institute of Spice Research
(IISR) in 2011, annual demand is estimated to reach 1,073,983 MT by 2030, meaning that
India needs an extra quantity of 336,956 MT ginger from its production.
As Nepal and India have special bilateral trade provision, Nepal can export ginger to
India with less formality.
Kochin Sagar Ethiopia Nigeria
Figure 27: Indian
ginger variety
31
5. Ginger Industry in Bangladesh This chapter provides overviews on ginger production and trade in Bangladesh, and analyses
the current status and future prospects of Nepali ginger there.
5.1 Production Ginger production in Bangladesh does not suffice its consumption needs. Forty-seven percent
of its estimated consumption is fulfilled through imports. Figure 29 shows the ginger
production trend in Bangladesh, which has been almost stable in the last 5 years.
Figure 29 Trend of ginger production and cultivated area in Bangladesh
Source: Bangladesh Bureau of Statistics, Government of Bangladesh, 2014
Rangamati, Rangpur, Tangail, Chittagong, Khagrachhari and Dinajpur are the important
ginger-growing districts of Bangladesh. Many farmers produce ginger in their homestead
lands.
Table 9 Trend of ginger production in various regions of Bangladesh
Name of
Region
Production quantity (MT)
2006-07 2007-08 2008-09 2009-10 2010-11 2012-13 2013-14
Chittagong 9235 11102 7069 7263 7373 7480 7591
Khagrachari 6005 5701 5741 6316 6519 6552 10860
Rangamati 8780 14282 15628 15588 16383 16721 17754
Tangail 8980 8312 7394 7527 7778 6864 6286
Dinajpur 7415 8522 7393 6736 6334 3785 3563
Rangpur 8215 13805 14196 15843 14582 13173 16799
Others 14695 15322 15187 15568 15411 14280 14182
Total 63325 77046 72608 74841 74380 68855 77035 Source: Bangladesh Bureau of Statistics, Government of Bangladesh, 2014
5.2 Trade
Domestic trade
Globally, Bangladesh is one of the major ginger consuming countries. Ginger is one of the
most preferred spices in Bangladeshi food recipes, and its consumption is increasing. It is
2006/07
2007/8
2008/9
2009/10
2010/11
2011/12
2012/13
Production 63,325 77,046 72,608 74,841 74,380 68,855 77,035
Area 8,324 9,401 9,002 9,051 9,101 8,926 9,483
7,600
7,800
8,000
8,200
8,400
8,600
8,800
9,000
9,200
9,400
9,600
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
ha
MT
32
mostly consumed in fresh form, dried and other forms of ginger are not popular in the
Bangladesh market.
In Bangladesh, farmers sell their fresh ginger to local traders, who then sell it to bigger
traders. The bigger traders consolidating the product from different local traders sell to distant
wholesalers. Finally, the wholesalers sell it to retailers and the product gets to consumers.
Ginger importers mostly sell imported ginger through commission agents on a taka (USD
0.013) /kg commission basis. The importers are mostly located in Chittagong and Dhaka. The
commission agents are based in the vegetable market centres such as Sham Bazaar in Dhaka.
The wholesalers buy the ginger from commission agents and sell through local vegetable
markets such as Kwaran Bazaar, New Market in case of Dhaka. The retailers obtain ginger
from wholesalers and sell through vegetable shops. The ginger distribution channels in
Bangladesh can be presented as:
a) Farmers Local traders Big traders Wholesalers Retailers
b) Importers Commission agents Wholesalers Retailers
Mainly two types of ginger varieties namely Chinese and local are popular in Bangladeshi
markets. Local ginger is available in markets during the main harvesting season, whereas
Chinese ginger is found in the markets throughout the year. Bangladesh also imports ginger
from India, Indonesia, Thailand and Nigeria.
Chinese ginger is clean and whitish in colour, attractive in appearance, and has low fibre
content and big sized rhizomes. Due to its low fibre content compared to other varieties,
Chinese ginger can be easily used in making powder and paste. The Chinese ginger is
packaged in 20 kg net bags with a clear label. Institutional clients such as restaurants, hotels
and spice industries have demands for Chinese ginger.
Among the different types of Indian ginger being imported to Bangladesh, the varieties from
Bangalore and Hassan are popular. The Bangalore and Hassan gingers are usually washed,
clean, light brown in colour and have medium sized rhizomes with numerous fingers, an
appealing scent and low fibre content. Another form of Indian ginger seen in the market is
from Mizoram, which is also known as “black ginger” due to its light blackish appearance.
The black ginger is mostly unwashed, containing fibre, a strong scent and medium sized
rhizomes. Indian ginger is mostly available in Bangladesh from November to February.
Local ginger is generally unwashed, dark brown in colour, containing moderate fibre and
smaller in rhizome size compared to Chinese and Indian ones and having a good scent. Due
to a good reputation of Indian varieties and their resemblance to local varieties, some traders
selling Indian varieties are accused of selling local varieties in the name of Indian ginger.
Price trend
Market price of ginger in Bangladesh is unstable as it is dependent on imports. Average
prices of local and imported ginger in the domestic market of Bangladesh are presented in
Figure 30.
Figure 30 Price trend of local and imported ginger in Bangladesh
33
Source: Department of Agriculture Marketing, Government of Bangladesh, 2014
Ginger prices in Bangladesh dropped to its lowest in the year 2012; the price then gradually
increased and reached its highest in 2014. During later months of 2014, the price was
observed to decrease gradually in response to increased supplies from China and India
(Figure 31). As November to January is the season for ginger harvest in India and
Bangladesh, the price of ginger was comparatively low in these months. After March till
September, the price fluctuated with its highest peak in June/July. During these months,
Chinese ginger is mostly supplied due to a scarcity of local and Indian ginger.
Figure 31 Price trend of local and imported ginger in Bangladesh in various months of 2014
Source: Department of Agriculture Marketing, Government of Bangladesh, 2014
Export
Bangladesh exported ginger valued at less than USD 10,000 in earlier years during the period
from 2004 to 2011. In 2012 and 2013, the export values were USD 243,000 and USD
366,000 respectively, mainly due to its export of ginger powder to Saudi Arabia.
Import
Bangladesh is the fourth largest importer of ginger worldwide in terms of value. In 2013
Bangladesh imported USD 46 million worth of ginger, which accounted to be 6.5 percent of
2009 2010 2011 2012 2013 2014
Local ginger 701 1,123 844 713 1,347 1,756
Imported ginger 738 1,283 872 678 1,244 1,833
-
500
1,000
1,500
2,000 U
SD/M
T
Year (AD)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Local ginger 1,279 1,253 1,379 1,855 1,792 2,158 2,127 1,953 1,990 1,887 1,639
Imported ginger 1,667 1,469 1,559 1,981 1,934 2,249 2,113 1,939 1,948 1,913 1,393
-
500
1,000
1,500
2,000
2,500
USD
/MT
34
the world’s total import value. However, in terms of volume and with import quantity of
65,478 MT, it is ranked as the second biggest ginger importer. The time series data revealed
an increasing trend of ginger import with a slight decline in 2012 (Figure 32). In 2013, import
reached up to USD 46,052,000, which was about 15 times higher than the import value
during 2004.
Figure 32 Trend of quantity and value of ginger imported by Bangladesh
Source: ITC, 2014
In Bangladesh, ginger is mostly imported in fresh forms. The whole ginger is neither crushed
nor grounded up, and it occupies more than 99 per cent of total import of Bangladesh (Figure
33).
Figure 33 Forms of ginger imported in Bangladesh in 2013
Source: ITC, 2014
With a 75 percent share in the total ginger import of Bangladesh, Chinese ginger is
performing very well with steady increases in the supply. Compared to 2004, the import
value of ginger from China to Bangladesh was 35 times higher in the year 2013. Other major
65396, 100%
83, 0%
Neither crushed nor ground (MT)
Crushed or ground (MT)
35
suppliers of ginger to Bangladesh are Indonesia, India and Thailand. The supply from
Indonesia is highly fluctuating with no supply in 2011 and 2012, but USD 8,478000 worth of
ginger supplied in 2013. According to traders, Bangladesh had to import ginger from
Indonesia due to high prices of Chinese ginger. Similarly, quite a large amount (USD
11,973,000) of ginger imported in 2011 was reportedly from Thailand with no or very little
import in the preceding and succeeding years.
Table 10 Import values of ginger in Bangladesh from different countries
Exporters Import value (USD ‘000) by years
2004 2005 2006 2007 2008* 2009 2010 2011 2012* 2013*
The
World
3,096 5,539 7,439 8,370 15,422 22,446 30,363 33,370 26,003 46,052
China 989 4,276 7,082 8,063 10,969 18,575 23,778 18,425 20,604 34,543
Indonesia 1,777 269 70 307 2,660 2,439 1,969 0 0 8,478
India 39 33 35 0 918 351 3,656 2,919 2,617 2,968
Thailand 14 56 13 0 0 845 102 11,973 0 40
Nigeria 0 11 0 0 858 0 0 0 2,759 0
Singapore 0 0 0 0 0 183 772 53 23 0
*mirror data
Source: ITC, 2014
Export data of Nepal shows some ginger export to Bangladesh (Figure 34) from 2009 to
2012, and no export in 2013. Sometimes Nepali ginger is exported to Bangladesh via Siliguri
in the name of Indian ginger.
Figure 34 Export of ginger to Bangladesh from Nepal
Source: TEPC, 2014
5.3 Rules and regulation for importation in Bangladesh The British Indian Governor promulgated the “Destructive Insects and Pest Act” in 1914,
which was later (during the regime of former East Pakistan) endorsed as “Destructive Insects
and Pest Rule” in 1966. In 1974, Bangladesh became a member of the International Plant
Protection Convention (IPPC) of FAO. In 1978, it also joined the Asia and Pacific Plant
2009 2010 2011 2012 2013
Nepal export (MT) 50.00 225.00 22.00 33.00 -
Nepal export (USD '000) 35.04 49.82 5.28 4.90 -
-
10.00
20.00
30.00
40.00
50.00
60.00
-
50.00
100.00
150.00
200.00
250.00
USD
'00
0
MT
36
Protection Commission. In 1989, Bangladesh amended the Destructive Insects and Pest Rule
1966 that was later repealed following promulgation of “Plant Quarantine Act" in 2011. The
Act is in force to date, and is mentioned to form a rule in 2015. Under the Plant Quarantine
Act, 2011, the Plant Protection Wing is given authority to monitor and act including search,
seizure and forfeiture. Some of the points mentioned in Plant Quarantine Act, 2011 are as
follows.
No importer shall, without an import permit, import any plant or plant product, beneficial
organism, soil or packing materials to Bangladesh
Any plant or plant product, beneficial organism or packing material shall be imported into
Bangladesh only through a designated point of entry, and upon notification for
importation, the import permit issued against the consignment and the phytosanitary
certificate issued by the National Plant Protection Authority of the exporting country
submitted to the concerned plant quarantine officer for examination.
On the import permit, there shall have a description regarding the type of treatment to be
applied on the plants or plant products at import or other measures before or after
importation of plants or plant products such as post-entry quarantine for ascertaining
phytosanitary risks
If any plant or plant product suspected harbouring any pest is imported into Bangladesh
or held in transit through Bangladesh or is transported from one part of Bangladesh to
another in contravention of the provisions of this Act, the plant or plant product shall be
seized or, as the case may be, refused to entry, destroyed, moved, treated and any other
necessary phytosanitary measures taken.
In the Import Permit, it is clearly written as 'the Phytosanitary Certificate should in addition
declare that the consignments are free from sand, soil and extraneous materials' and that 'the
Import Permit number shall be quoted in the Phytosanitary Certificate'.
5.4 Status and prospects of Nepali ginger in Bangladesh
Nepali ginger as perceived by traders
Since, there is no or negligible import of Nepali ginger, most of the ginger traders in
Bangladesh are unaware of Nepali ginger. Those who are familiar with Nepali ginger
considered it to be of low to medium quality. When some samples were shown during this
study, most of the traders ranked them in the small rhizomes category fetching the least price.
The traders mentioned in comparison to a kilogram of high quality Bangalore ginger sold for
60 Taka that a kilogram of the Nepali ginger could be sold only for 40 Taka.
Major competitor for Nepali ginger
The major competitors for Nepali ginger in Bangladesh are Chinese, South Indian (Kerala
and Karnataka), North Indian (Mizoram and Siliguri) and Bangladeshi ginger. Others are
ginger from Indonesia, Bhutan, Nigeria and Thailand. A comparison of various types of
ginger in Dhaka market is presented in Table 11.
Table 11 Summary of quality features of various types of ginger traded in Dhaka
Chinese Indian (Bangalore) Indian (Mizoram) Local (Bangladeshi)
Features
Big rhizome size
Whitish colour
Less fibre
High moisture
Features
Small rhizomes but
most pieces are more
than 200 gm.
More fibre than
Features
Similar to
Bangalore but dark
in colour
Unwashed
Features
Similar to Indian but
has thinner rhizomes
Unwashed
Good smell
37
Chinese Indian (Bangalore) Indian (Mizoram) Local (Bangladeshi)
content
Washed and cleaned
Packaged in 20 kg
net bag
Chinese
Good smell
Washed and cleaned
Shiny in colour
Packaged in 45 kg net
bag
Good smell
More fibre
Packaged in 45-60
kg gunny sack
More fibre
Loose packing
(usually 60 kg gunny
sack)
Market position
Strong presence in
market with 75% of
market share
Available
throughout the year
More expensive than
others
Major customers are
hotels and
restaurants
Market position
Sells high during main
season
Available from
December till March
Cheaper than Chinese
Major customers are
retailers and
household consumers
Market position
Sells as “black
ginger” due to dark
colour
Available from
December till
March
Is the cheapest
Major customers are
household
consumers
Market position
Good market share
during main season
Available from
November to
February
Cheaper (5-10
taka/kg) than
Bangalore ginger
Major customers are
household consumers
Prospects for Nepali ginger
Bangladesh is one of the major importers
of ginger and due to its high fresh imports;
Nepali ginger has a good prospect in
Bangladesh. However, the quality of
ginger should be improved with rhizomes
sorted to a minimum size of 200 gm.
With Bangladesh being one of the
neighbouring countries, there is advantage
of shorter distance for trade, which is very
important in terms of exporting fresh
ginger. The rules for importation are also
not stringent, which can benefit a country
like Nepal.
Due to a majority of the population having
low to medium purchasing capacity, price
is the crucial factor for the sale of ginger.
The import trend of ginger shows the instability of quantity purchased from various
countries in different years. According to them, one of the major reasons for the shift
is due to high price of regular partners such as Chinese. Nepali traders should be well
aware of the market price and competitors, and be prepared to offer similar or lower
prices than Indian products.
Trust is the crucial factor while dealing in a trade. It is reported that traders in Bangladesh are
hardly trusted in business dealing. During an interaction with Nepali traders, it was reported
that on several occasions, payments were not made on time.
Box 3: Process of business transaction
The business transaction is mainly done
through personal contact established by
the exporter in Nepal and ginger importers
in Bangladesh. Once the contact is
established, the exporter sends its ginger
sample to the importers. It is also a
common practice between the two parties
to send the pictures of the sample through
email. Once the samples are accepted by
the importers, further talks and
negotiations take place between the two
parties for the quantity, and depending
upon the quantity, the importer opens L/C
for purchase of ginger.
38
6. Conclusion and Ways Forward
6.1 Summary of market observations
The overviews of the market scenarios in India and Bangladesh are concluded in Table 12.
Table 12 Summary of the markets overviews
India Bangladesh
Largest producer and consumer of ginger Low production, meeting approximately half of
the domestic consumption needs
Exports substantial amount of ginger and its
derivatives
Export is negligible
The market consists of primarily domestic
production as it is the largest producer worldwide
The market primarily consists of imported
ginger, mainly from China
Demand for both dry and fresh forms of ginger Mostly fresh ginger is traded
Major importing partner for fresh ginger is Nepal Importing partners, besides China and India, are
not constant and keep changing
Majority of Nepali ginger is exported to India Negligible share of export from Nepal
Major competitors for Nepali ginger are Indian
products
Major competitors for Nepali ginger are
Chinese, Indian and Bangladeshi ginger
Good history of trade relationship with Nepal Evolving stage of trade relation with Nepal
Nepali exporters are aware of market scenarios Nepali exporters are unaware of market
scenarios
Nepali exporters have business relationships, and
are aware of business procedures
Nepali exporters do not have business
relationships, and are unaware of business
procedures
Willing to accept any type of ginger including
ginger containing soil
Strict on accepting only fine quality ginger.
However, ginger with soil is still found.
Due to old trade relationships, importers are
highly trusted and delivery is given on credit
Importers are hardly trusted; there are cases of
fraudulence by the importers
Visible opportunities to increase the Nepali
market share from the current 8% of total Indian
market size by increasing supply of quality
products to big markets such as Delhi
Good prospects of exporting quality products
(big and washed rhizomes) for a competitive
price (would be paid less than Indian varieties)
6.2 Major constraints observed As per the market study done in India and Bangladesh, the major constraints observed to
expand the market of Nepalese ginger in these markets are listed as below.
39
Constraints in production
Less competitive varieties: Mostly Nepalese ginger have small sized, dark brown and
fibrous rhizomes. This has reduced its competitiveness in these markets and is therefore
considered of lesser quality compared to South Indian and Chinese varieties. These
markets mostly demand ginger with big rhizome, less fibre and whitish in appearance.
Low commercial production practices: There is traditional practice of ginger
production in Nepal resulting high production costs and low returns. The farm innovation
regarding market-based production of ginger is poor specifically in quality seed and
cultivar selection, crop management and harvesting practices.
Constraints in post-harvest and processing
No quality consistency: This was mentioned to be one of the most problematic issues of
Nepalese ginger in the markets. There is less practice of sorting and grading, and most of
the ginger exported are mixed with different varieties and different grade rhizomes and
inert materials. Quality variation in the same batch is also found high resulting in low
grade and value for Nepalese ginger.
Lack of cleaning and washing facilities: Most of the exported Nepalese ginger
(especially in India) is unwashed and dirty in appearance. This has reduced the
competitiveness of the ginger, and made it prone to export bans at various points in time,
as export of ginger with soil is not allowed both in India and Bangladesh. Even the ones
that are washed (in nearby Indian city such as Naxalbari) are mostly done manually and
do not produce quality ginger.
There is lack of cleaning and washing facilities in Nepal. Initiation towards this has taken
place (see Table 4). However, it is not enough for the country’s production.
Lack of proper drying technology: Nepali dried ginger is considered inferior in the
Indian market, and is less competitive than South Indian varieties. The process of making
dry ginger in Nepal is traditional and does not use modern technology.
Constraints in marketing and export
Low visibility of Nepalese ginger: This has been observed as a serious issue in both
India (especially in Eastern Region) and Bangladesh market for Nepalese ginger. It is
seen that these markets are unaware about Nepalese ginger as it is mostly sold in the
name of Indian ginger especially as Siliguri brand. The major reasons noted for such is
due to low access of Nepalese traders directly into Indian and Bangladeshi markets.
Nepalese exporters mostly sell their products to nearby Indian cities such as Siliguri and
Naxalbari where washing and cleaning is done and sent to bigger markets.
Difficulties in meeting sanitary and phytosanitary standards: In order to officially
import ginger in India and Bangladesh, there is a requirement of obtaining plant
quarantine certificate which needs to explicitly mention that the ginger are free from
quarantined weed-seed and soil. However, due to the lack of proper infrastructure and
facilities for cleaning and washing, it has been observed to be a big problem to meet this
requirement. In present context, the certificates are being issued in some force mentioning
40
of ginger being free of weed-seed and soil, which would otherwise result in complete
stoppage of ginger export from Nepal. The issue, when raised by the importing country,
would have negative consequences in the export of ginger.
Similarly, Nepal do not have accredited lab for quality testing, resulting in compulsion of
testing to be done in Central Food Laboratory in designated Indian cities. This has
consumed more money and time of the exporters.
Local multiple taxation along transportation: Though there is provision of raising one-
time tax by a local government at place where ginger originated, the traders have to pay
such tax in all districts along transportation. This is more prevalent in western region than
eastern. For e.g. the trader transporting ginger from Salyan to Banke has to pay NPR
0.25/kg as DDC tax in Salyan then NPR 1000/truck in Dang and Kapilvastu as district
export tax.
Extra-legal payment required during transportation and export: Extra-legal
payments to local gangs, interest groups as well as security along transportation and
various authorities at the export points have also increased the cost of ginger export.
Transfer of ginger through quarantine (food and plant) and custom clearances at the
export points by exporting traders is intermediated by export (Nepal), import (India) and
custom agents. The export traders with the help of the agents upon consignment based
extra-payment mange transfer of their ginger through checking and custom points. Such
roughly added a rupee cost on per kilogram basis on the export of ginger.
High cost for custom clearance: Approximate cost of custom clearance while exporting
to India is NPR 3,200 per truck. However, exporters have to pay anywhere from NPR
7,000 to 10,000 per truck for the clearance due to unofficial costs as discussed earlier.
Besides, the Indian custom authorities at the custom point only allow clearance to a
consignment valued at maximum NPR 160,000 (USD 1623). Custom clearance to a
higher valued consignment requires countersign by the Assistant Commissioner that
added to the costs of documentation for exporting higher value consignment.
Transit issues: The transit to Bangladesh is time consuming as it takes place at specified
times during daylight hours with security escorts. Only convoys of less than 25 trucks are
allowed at a time. Moreover, transportation should be done only in pilfer proof
containers/trucks that can be securely locked, and only the vehicles registered to Nepal
are permitted. Such issues put major limitations on free transportation of goods.
6.3 Ways forward To increase competitiveness of Nepal’s ginger in India and Bangladesh, Nepal needs to work
through the entire value chain. Quality and price are the major factors to be considered to
make the products competitive in these markets. A two-pronged strategy is suggested for
developing the market in India and Bangladesh for Nepali ginger and ginger products. They
are i) assurance of quality production of ginger and its derivatives and ii) support in
marketing and branding for better market penetration and outreach.
A) Assurance of quality production of ginger and its derivatives
To obtain exportable ginger products, the Nepali ginger industry should work in various
functional levels such as production, post-harvest handling and processing. The areas of
intervention in each of the levels are given below.
41
Introduction of appropriate variety as per the market preference: Nepal should
introduce new varieties of ginger, which produce bigger rhizomes that are whitish in
colour with less fibre content and higher productivity. For this, some piloting plots should
be established in various locations to test high yielding and better quality varieties
including Chinese and Indian ones. Once successful, there should be multiplication of the
varieties in various parts of the country. This will result in overall increment in
productivity as well as quality of ginger grown in Nepal. Some instances where private
sector has initiated such practice can be seen in Nuwakot. Chinese varieties tested there for
cultivation has resulted in successful production of big and whitish rhizomes that is
gaining more popularity in local markets such as Kalimati.
Farmers should be trained in good agriculture practice (GAP): Appropriate knowledge is crucial for better productivity and quality production across Nepal. The farmers should be made aware of proper seed/variety selection and healthy ginger production practices. An expansion of GAP based ginger production would help to obtain better quality and healthier ginger products, which can be a base for getting certified products for improved market penetration. An initiation of the Ginger Competitiveness Project towards better ginger production practices in Eastern Region through establishment of Farmer’s Field School is highly appreciated by farmers, and has resulted in an increase in ginger productivity and an introduction of ginger production through improved practices. This sort of initiation should be replicated throughout the country.
Practising harvesting of mother rhizome: The mother rhizome is harvested during off seasons. In eastern Nepal, there is a practice of harvesting mother rhizome, but this is not the case in the western parts. In order to increase ginger supply during the off season in both the markets and to reap the benefit of higher prices, the mother rhizome harvesting practice should be encouraged throughout the country. As there are some reports of high disease infestation in mother rhizome harvesting areas, proper cultural practices should be adopted while harvesting the rhizomes.
Post-harvest handling and processing: In order to develop/expand Nepalese ginger market in India and Bangladesh, there is a need of quality production and proper post-harvest handling and processing. As both the markets have high demand for properly washed, graded and properly packed ginger, it is very crucial to work seriously in these areas. Proper cleaning, sorting and grading of ginger rhizomes at farmers' level and commercial scale are recommended in order to improve quality of ginger products. Cleaning, sorting and grading of ginger rhizomes have become urgent from two perspectives i) to satisfy the import requirements of both the countries, which especially demand for soil free ginger and ii) to obtain better market position and product value in these markets. In this initiation, we should work both at farmers’ level as well as commercial level. At farmers’ level, cleaning can be done through the construction of small washing plants with two or three small tank systems. If the tanks are not available, cleaning can also be done in vessels. Illustration of such technology can be seen in a detail report of National Agriculture
Innovation Project (NAIP, 2014). After cleaning, ginger should be sorted, graded and packaged properly. At commercial level, construction of bigger infrastructure for washing is recommended at specific trade points, at least one in each Development Region. These washing facilities will have either manual or automatic cleaning mechanisms and the capacities of such facilities will vary depending upon the availability of ginger in that particular region. The infrastructures require higher investments, and therefore can be built through a public-private partnership model.
42
The on-going initiative of developing and running a washing centre in Dhulabari is highly commendable; it has to be replicated in other parts especially Butwal and Nepalgunj after examining its performance. Similarly, guidelines and capacity building activities to the managers and operators of the facilities are equally important.
Proper packaging: Packaging also plays an important role in increasing the competitiveness of the product as well as keeping the product fresh for longer time. It is recommended to have a standard packaging size of 60 kg for better market performance in the Indian and Bangladeshi markets. Similarly, it would help in visibility of Nepalese products and be more trustworthier if placed appropriate labels in the packaging.
Proper storage: Storage is important if we want to reap the benefits of off season selling. Chinese ginger is available year round due to availability of cold storage, which provides them with higher prices. Large scale cold storage can be built at major market centres, whereas small scale and low cost storage at local level. .
Establishment of modern technology for dry ginger (sutho) making: The existing sutho making technology in Nepal is traditional as it is manually operated and very tedious to operate. This reduces the quality of dry ginger as well as scale of production. Quality and scale of dry ginger production can be improved with modern drying technologies that in turn will also reduce distress sale of fresh ginger at relatively low prices. The sutho making technology widely used in Southern India can be adopted in Nepal.
B) Support in marketing and branding for better market penetration and outreach
Nepal has been practicing traditional methods of marketing without following proper product
development, packaging and branding practices. In order to improve the business relation
with Indian and Bangladeshi counterparts, the following recommendations are suggested.
Strengthening of distribution channels: Identifying exporters who are interested in doing business with improved-quality-ginger would be an initiating point to strengthen the distribution channel. Then they have to be linked with buyers stationed in Indian and Bangladeshi markets. In this process, there is a need for organization of exporters centered capacity building activities related to export procedures, export document preparation and business communication. Similarly, ginger farmers and traders, who want to be involved in a better quality ginger marketing channel, have to be trained on proper postharvest handling, storage, packaging and transportation.
Developing auction markets: Auction marketing development could be an appropriate option in the ginger sector to give buyers and sellers of ginger a common place and thereby make the trade more formal, transparent and fair. We can start an auction market close to one of the washing facilities. Upon success of the auction market, it can be replicated in other major ginger marketing centres.
Collective branding of ginger: , Collective branding could be a good option to develop visibility of Nepalese ginger, and to promote its trade in Indian, Bangladeshi and other export markets. Registration of a collective ginger trademark initiated by the TEPC with support of the NGPTA would ensure continuity and sustainability. Furthermore, registration of a collective trademark could be completed in major importing countries including India and Bangladesh.
43
Facilitation/participation in business meetings, trade fairs and exhibitions: Nepal can put ginger as one of the featured commodities in international trade fairs organized in Nepal. Similarly, the entrepreneurs and associations should be supported to participate in the trade fairs and exhibitions in the target countries. Further, the Ministry of Commerce and Supplies and FNCCI can facilitate to conduct business meetings with relevant exporters and importers to establish a meaningful business relationship.
Negotiate to increase the limit of ginger consignment value applied in Indian custom points: The Indian authorities at the custom point (such as Kakarbhitta) only allow clearance to a consignment valued at maximum of NPR 160,000 (USD 1623). Custom clearance of a higher value consignment requires countersign by the Assistant Commissioner usually situated bit far from border (Siliguri), which adds costs of documentation for exporting higher value consignment. Looking at the current market value and the increased export, negotiation should be done with Indian government to increase such limit.
Establishment of a contact office in Bangladesh for a certain period: The market of Bangladesh is very unreliable. Nepali exporters are not comfortable with Bangladeshi counterparts because of a lack of trust in business. Therefore, a contact office for Nepali ginger should be established in Bangladesh for an initiation of the trade. The office will take care of understanding ginger market situation there, providing information about ginger traders in the market, establishing linkages between Nepali exporters and Bangladeshi importers, facilitating deals and ascertaining fair transactions between the parties. The centre can also prepare a list of importers, who it believes are good to have business with. The office can be ceased upon smooth operation of the business,.
Collaboration with Trading Corporation of Bangladesh (TCB): TCB is a government body that looks after import-export businesses as well as regulates sales and distributions of imported goods through appointment of dealers and agents. TCB has been importing ginger from several countries. Our government can take initiatives to collaborate with TCB to supply ginger to Bangladesh as per its requirement.
Support to establish accredited laboratory: An accredited laboratory should be established so that the importing country (esp. India) can recognize the test reports and certification issued by the laboratory. Existing laboratories should be upgraded, and negotiations should be made with Indian counterparts to recognize the tests done by the laboratories.
44
References Abubaker, A. (2011, April). Ginger: A rhizome with high export value. Facts for you.
Camacho, H. E., & Brescia, A. (2009). The Australian Ginger Industry: Overview of Market
Trends and Opportunties. The State of Queensland.
FAO. (2002). Ginger: Post-Production Management for Improved Market Access. Retrieved
2014, from www.fao.org/
FAS. (2013). Food and Agriculture Import Regulations and Standards-Narrative, India
Country Report,. New Delhi: Global Agricultural Informatioin Network (GAIN).
FSSAI. (n.d.). Manual on Food Import Clearance System (FICS). India.
Gracy, C. e. (2013, 12 30). Store and sell ginger after May 2014. Agropedia.
HVAP. (2011). Value Chain Analysis of Ginger Subsector in Nepal. Surkhet, Nepal.
ICAR. (2014, August). Ginger (Extension Pamphlet). Kerala, India.
ITC. (2014). Retrieved 2014, from www.intracen.org
NAIP. (2014, March). A Value Chain on Ginger and Ginger Products. Bhubaneswar, India.
NEAT. (2011, August). Value Chain/Market Analysis of Ginger Sub-sector in Nepal.
Kathmandu, Nepal.
NSCDP. (2014). Annual Report 2012/13. Lalitpur, Nepal.
Parthasarathy, V. e. (2011). Vision 2030. Calicut, Kerala: Indian Institute of Spice Research.
Ravi, R. (2012, August 04). Ginger prices set to rise on loweryeild from new crop. The
Financial Express.
Rijal, I. P. (2011). Public support in the production and marketing system in agriculture with
special focus on quarantine system. Lalitpur, Nepal.
45
46
Annexes
47
Annex 1: Brief on ginger, its derivatives and their usage
Primary product Fresh ginger:
Fresh ginger is rhizome that is dug up from soil and has high moisture content. Two forms of
fresh ginger is found, i) young (baby rhizome) and ii) mature (mother rhizome). The young
ginger has mild flavour and has a pale, thin skin that does not require peeling. Mature
rhizome has a tough skin and requires peeling to get to the fibrous flesh. Fresh ginger is either
chopped or grated before use and is used mostly as spice in vegetables. The major consumers
of fresh ginger are mostly Asians and therefore it is in high demand across Asia. Due to
Asian immigrants, the demand for fresh ginger has also increased in Western Europe and
North America (FAO, 2002). Light-coloured ginger has traditionally been priced higher for
its subtle lemon-like aroma. Dark ginger has more heat and is favoured for extraction
purposes. Fresh ginger is used as a vegetable.
Dried ginger:
Dried ginger is found as a whole rhizome or in sliced form. Some dried ginger is sold with
the root skin left on whereas usually the skin is peeled off. To prepare the skinless dried
ginger, the curing process, which consists of boiling the ginger rhizomes in water. The skin is
then removed by peeling, scraping or slicing. Before use, it is soaked in recipe liquid. Dried
ginger may be further processed to produce oil.
Secondary products (Examples) Ginger oils
Ginger oils are derived through steam distillation of the rhizomes. Oils have a spicy and
peppery aroma and are used for as antiseptics, aphrodisiacs, laxatives, stimulants, and for
other tonic properties. It is mostly used after blending with other essential oils to produce
different mixtures for various ailments. It is preferred to dried spices as flavouring by the
food industry as they are more stable, cleaner, free from contaminations, and can be
standardized by blending oils from different sources (FAO, 2002). Essential oils are used in
the manufacturing of soft drinks, ginger beer and food preparation.
Ginger candies
The ginger is boiled in sugar syrup and then is air-dried and coated in sugar to obtain candied
ginger. Ginger candies are popular in Australia and the product from there is considered to
have “superior and consistent quality”(Camacho & Brescia, 2009).
Ginger Oleoresins
Oleoresins are obtained through solvent extraction and hence contain volatile fractions as
well as other components that are soluble in the solvent used in the extraction process. It is
also preferred by the food industry as a flavouring agent. Gingerols are responsible for ginger
pungency and as gingerols are decomposed by heat during distillation process, it is found in
higher concentrations in oleoresins extractives.
Ginger pickle
The root of ginger is sliced paper-thin and pickled in a sweet vinegar solution. This pickle
often accompanies sushi and is served to refresh the palate between courses. It is coloured
pink or red (Camacho & Brescia, 2009).
Nutraceuticals
48
Ginger enters in many ayurvedic formulations. In the United States and Europe, ginger
preparations are sold as nutraceuticals or over-the-counter remedies against nausea, motion
sickness, and migraine. It is listed in the German Commission E Monographs as an approved
phyto-medicine against dyspepsia and to prevent motion sickness.
Ginger tea
Ginger tea, prepared by cooking slices of fresh ginger for a few minutes, is a spicy and
healthy drink. The readymade ginger tea bag....
49
Annex 2: Quality Standards for Export In herbs and spices, there are two major international standards, those set by the United States
and the European Union (EU). Standards relying on the same general parameters also exist in
the countries responsible for growing herbs and spices, such as the Indian Spice Board. These
are influenced by the standards set by the major importing countries. There are various types
of tests that make up the range of international standards. Some of them are cleanliness, ash
level, acid insoluble ash (AIA), volatile oil (V/O) determination, moisture content, microbial
measures, pesticides level, mycotoxin levels and particle size.
The American Spice Trade Association (ASTA) has established standards for Cleanliness
Specifications in terms of permitted amounts of extraneous matter or filth, mould (visible),
insect excreta and insect damaged materials. It has become a standard for most exporting
countries. Importing countries that do not have specified standards may use ASTA’s
specifications (FAO). Most producing countries have built up their facilities to meet the
requirements as per ASTA Cleanliness Specifications.
ASTA Cleanliness Specifications for Ginger
Whole
insects,
dead
Excreta,
Mammalian
Excreta,
others Mold
Insect
Defiled/Infested
Extraneous/Foreign
Matter5
by count by mg/kg by
mg/kg No more than 3% moldy pieces
and/or insect infested pieces by
weight
% by weight
4 6.6 6.6 1.00
2 Extraneous matter includes but is not restricted to: stones, dirt, wire, string, stems, sticks, non toxic
foreign seeds, excreta, manure and animal contamination
The US government specification for dry ginger and powder is as follows:
US Government Specification for Dry Ginger and Powder
Total Ash
(%w/w) max
Acid
Insoluble Ash
(%w/w) max
Moisture(%w/w)
max
Volatile oil
(v/w) min
Crude fiber
max (%)
Starch min
(%)
7 1 12 1.5 8 42
EU member countries such as UK, Germany, and the Netherlands have their own
specifications. But standards in Europe are typified by the standards set by the European
Spice Association (ESA), which draw both on national and international standards issued by
the ISO (International Standards Organization). The following table presents the minimum
quality standards for ginger set by ESA.
European Spice Association (ESA) Minimum Quality Standards for Ginger
Total Ash (%w/w)
max
Acid Insoluble Ash
(%w/w) max Moisture(%w/w) max Volatile oil (v/w) min
(ISO) (ESA) (ISO) (ISO)
8 2 12 1.5
As per the ESA, the extraneous matter and foreign matter should not exceed 1% and 2%
respectively; should be free from live and/or dead insects, insect fragments, and rodent
5 Extraneous matter includes but is not restricted to : stones, dirt, wire, string, stems, sticks, non toxic foreign
seeds, excreta, manure, and animal contamination
50
contamination visible to naked eye. In microbial analysis, Salmonella must be absent in (at
least) 25 gm. of material, yeast and mould maximum up to 106/g and E. Coli maximum up to
103/g. The European Union has fixed limits for aflatoxin and it should not exceed 10 ppb in
total.
To be sold as “organic”, a product must be grown following organic agricultural practices
and be certified by an accredited certification body. The International Federation of Organic
Agriculture Movement (IFOAM) has established organic production, processing and trading
standards, and tried to harmonize certification systems worldwide. However, countries can
have their own standards such as Japanese Agriculture Standards (JAS) of Japan, EU organic
standards, US organic standards. To comply with organic standards and practices, the
operator must document all farming and post-harvest activities including farm field map,
field history, activity register, input records including purchase, output records including
sales, harvest records, storage records, pest control records, movement records, equipment
cleaning and labelling. All such documents must meet specific standards that are enumerated
in directives issued by the certification agencies.
In the processing plant, the operator must present an “organic handling plan” which shows
how contamination from prohibited materials and with non-organic products can be
prevented. This includes a detailed description of the process, receiving and storage of
ingredients and finished products, cleaning and sanitation of the processing equipment,
facilities pest management, and a documentary “paper trail” that must permanently record all
of the above.
In India, the Bureau of Indian Standards (BIS) has the AGMARK grading system. It
categorizes ginger to different grades based on the size and weight of rhizome, extraneous
matter, and lime content as calcium oxide.
51
Annex 3: Codex standard for ginger (CODEX STAN218-1999)
1 DEFINITION OF PRODUCE
This Standard applies to the rhizome of commercial varieties of ginger grown zingiber
from Zingiber officinale Roseoe, of the Zingiberaceae family to be supplied fresh to the
consumer after preparation and packaging. Ginger for industrial processing is excluded.
2. PROVISIONS CONCERNING QUALITY
2.1 MINIMUM REQUIREMENT
In all classes, subject to the special provisions for each class and the tolerances the
ginger must be:
- Whole
- Sound, produce affected by rotting or deterioration such as to make it unfit for
consumption is excluded.
- Clean, practically free of any visible foreign matter
- Practically free of damage caused by pests affecting the general appearance of the
produce
- Free of abnormal external moisture, and if washed- dried properly, excluding
condensation following removal from cold storage
- Free of any foreign smell and/or taste
- Firm
- Free of abrasions, provided light abrasions which have been dried properly are not
regarded as a defect
- Sufficiently dry for the intended use: skin, stems and cuts due to harvesting must be
fully dried.
2.1.1 The development and condition of the ginger must be such as to enable it:
- To withstand transport and handling and;
- To arrive in satisfactory conditions at the place of destination.
2.2 CLASSIFICATION
Ginger is classified in three classes defined below:
2.2.1 “Extra” Class
Ginger in this class must be of superior quality. It must be characteristic of the
variety and/or commercial type. The roots must be cleaned, well shaped and free of defects,
with the exception of very slight superficial defects, provided these do not affect the general
appearance of the produce, the quality, the keeping quality and presentation in the package.
2.2.2 CLASS I
Ginger in this class must be of good quality. It must be characteristic of the variety
and/or commercial type. The roots must be firm without evidence of shrivelling or
dehydration and without evidence of sprouting. The following slight defects however may be
allowed provided these do not affect the general appearance of the produce, the quality, the
keeping quality and presentation in the package:
- Slight skin defects due to rubbing provided they are healed and dry and the total
surface area affected not exceeding 10%
2.2.3 CLASS II
52
This class includes ginger that does not qualify for inclusion in the higher classes, but
satisfies the minimum requirements specified in section 2.1 above. The roots should be
reasonably firm. The following defects however, may be allowed provided the ginger retains
its essential characteristics as regards the quality, the keeping quality and presentation:
- Skin defects due to rubbing, provided they are healed and dry and the total surface
area affected not exceeding 15%
- Early signs of sprouting (not more than 10% by weight by unit of presentation)
- Slight markings caused by pests
- Healed suberized cracks, provided they are completely dry
- Slight traces of soil
- Bruises
3. PROVISIONS CONCERNING SIZING
Size is determined by the weight of the ginger.
Size Code Weight (grams)
A 300
B 200
C 150
4. PROVISIONS CONCERNING TOLERANCES
Tolerances in respect of quality and size shall be allowed in each package for produce
not satisfying the requirements of the class indicated.
4.1 QUALITY TOLERANCES
4.1.1 “EXTRA” CLASS
Five percent by number or weight of ginger not satisfying the requirements of the
class, but meeting those of class 1 or, exceptionally, coming within the tolerances of that
class.
4.1.2 Class I
Ten percent by number or weight of ginger not satisfying the requirements of the class
but meeting those of Class II or, exceptionally, coming within the tolerances of that class .
4.1.3 Class II
Ten percent by number or weight of ginger satisfying neither the requirements of the
class not the minimum requirements, with the exception of produce affected by rotting or any
other deterioration rendering it unfit for consumption.
4.2 SIZE TOLERANCES
For the “Extra” Class 5% and for class I and class II. 10% by number or by weight of
ginger not satisfying the requirements in regards to sizing.
5. PROVISIONS CONCERNING PRESENTATION
5.1 UNIFORMITY
53
The contents of each package must be uniform and contain any ginger of the same
origin, variety and/or commercial type, quality and size. The visible part of the package must
be representative of the entire contents.
The weight of the heaviest hand (rhizome) may not be more than twice the weight of
the lightest hand (rhizome) in the same package.
5.2 PACKAGING
Ginger must be packed in such a way as to protect the produce. The materials used
inside the package must be new one, clean and of a quality such as to avoid causing any
external or internal damage to the produce. The use of materials, particularly of paper or
stamps bearing trade specifications is allowed provided the printing or labelling has been
done with non-toxic ink or glue .
Ginger shall be packed in each container in compliance with the Recommended
International Code of practice for packaging and Transport of Fresh Fruits and Vegetable
(CAC/RCP44-1995)
5.2.1 Description of Containers
The containers shall meet the quality, hygiene, ventilation and resistance
characteristics to ensure suitable handling, shipping and preserving of the ginger, packages
must be free of all foreign matter and smell.
6. MARKING OR LABELLING
6.1 CONSUMER PACKAGES
In addition to the requirements of the Codex General Standard for the Labelling of
Pre-packaged Foods (CODEX STAN 1-1995). The following specific provisions apply:
6.1.1 Nature of Produce
If the produce is not visible from the outside, each package shall be labelled as to
name of the variety and/or commercial type.
6.2 NON-RETAIL CONTAINERS
Each package must bear the following particulars, in letters grouped on the same side,
legibly and indelibly marked and visible from the outside, or in the documents accompanying
the shipment.
6.2.1 Identification
Name and address of exporter, packer and/or dispatcher. Identification code (optional)
2.
6.2.2 Nature of Produce
Name of the produce if the contents are not visible from the outside. Name of the
variety and/or commercial type (optional).
6.2.3 Origin of Produce
Country of origin and optionally, district where grown or national regional or local
place name.
1 For the purposes of this Standard this includes recycled material of food – grade
quality.
54
2 The national legislation of a number of countries requires the explicit declaration
of the name and address.
6.2.4 Commercial Identification
- Class:
- Size (size code or minimum and maximum weight in grams):
- Number of units (optional):
- Net weight (optional):
6.2.5 Official Inspection Mark (optional)
7. CONTAMINANTS
7.1 The produce covered by this standard shall comply with the maximum levels of the
Codex General Standard for Contaminants and Toxins in Food and Feed (CODEX STAN
193-1995).
7.2 The produce covered by the Standard shall comply with the maximum residue Limits
for pesticides established by the Codex Alimentarius Commission.
8. HYGIENE
8.1 It is recommended that the produce covered by the provisions of this Standard be
prepared and handled in accordance with the appropriate sections of the Recommended
International Code of Practice-General Principles of Food Hygiene (CAC/RCP 1-1969).
Code of Hygiene Practice for Fresh Fruits and Vegetables (CAC/RCP 53-2003), and other
relevant Codex texts such as Codex of Hygienic Practice and Codex of Practice.
8.2 The produce should comply with any microbiological criteria established in
accordance with the Principles for the Establishment and Application of Microbiological
Criteria for Foods (CAC/GL 21-1997).
55
Annex 4: Top 10 countries in terms of ginger production quantity
Countries 2008 2009 2010 2011 2012
Global
share
India 390080 380100 385330 702000 703000 34%
China 297000 350000 365000 420000 425000 20%
Nepal 161171 178987 210790 216289 255208 12%
Nigeria 175070 168800 162223 160000 156000 7%
Thailand 161505 170125 172681 152630 150000 7%
Indonesia 154963 122181 107735 94743 113851 5%
Bangladesh 77046 72608 74841 74380 72084 3%
Japan 49800 53200 53800 54200 55000 3%
Cameroon 12584 33086 39342 40531 41000 2%
Taiwan 31810 31393 34864 36617 37500 2%
Annex 5: Top 10 countries in terms of ginger production area
Countries 2008 2009 2010 2011 2012
Global
share
India 104360 108640 107540 149100 150000 47%
Nigeria 55690 52330 52330 48910 48000 15%
China 27000 34000 35000 38000 38500 12%
Indonesia 36000 27000 24000 21000 25000 8%
Nepal 14007 15838 18041 19081 20256 6%
Thailand 9855 10081 10248 9757 9000 3%
Bangladesh 9416 9017 9066 9116 8704 3%
Cameroon 1798 4409 4629 4898 5000 2%
Japan 1920 1980 1980 1950 2000 1%
Taiwan 1198 1136 1198 1256 1300 0%
Annex 6: Varieties of ginger in India
Improved varieties of ginger in India
Variety Fresh mean
yield (t/ha)
Maturity
(days)
Dry
recovery
(%)
Crude fibre
(%)
Oleoresin
(%)
Essential oil
(%)
IISR-
Varada
22.6 200 20.7 4.5 6.7 1.8
Suprabha 16.6 229 20.5 4.4 8.9 1.9
Suruchi 11.6 218 23.5 3.8 10.0 2.0
Suravi 17.5 225 23.5 4.0 10.2 2.1
Himagiri 13.5 230 20.6 6.4 4.3 1.6
IISR
Mahima
23.2 200 23.0 3.26 4.48 1.72
IISR
Rejatha
22.4 200 19.0 4.0 6.3 2.36
56
Local cultivars/land races of ginger in India
Variety Fresh mean
yield (t/ha)
Maturity
(days)
Dry
recovery
(%)
Crude fibre
(%)
Oleoresin
(%)
Essential oil
(%)
China 9.5 200 21.0 3.4 7.0 1.9
Assam 11.78 210 18.0 5.8 7.9 2.2
Maran 25.21 200 20.0 6.1 10.0 1.9
Himachal 7.27 200 22.1 3.8 5.3 0.5
Nadia 28.55 200 22.6 3.9 5.4 1.4
Rio-de-
Janerio
17.65 190 20.0 5.6 10.5 2.3
57
Annex 7: Market arrival of ginger in Azadpur market
Quantity of fresh ginger arrival in Azadpur market from 2001 to 2013
Monthly arrival of fresh ginger in Azadpur Market from 2009/10 to 2013/14
-
20,000.0
40,000.0
60,000.0
80,000.0
100,000.0
120,000.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MT
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
April May June July Aug Sep Oct Nov Dec Jan Feb Mar
MT
2009/10 2010/11 2011/12 2012/13 2013/14
58
Annex 8: Agmark standards of ginger classification
Grade designations and quality of Garbled Non-bleached Ginger (Whole)
Grade
Designation Quality
Special Characteristics
Size of
rhizomes,
(length in
mm). (Min)
Organic
Extraneous
matter, %
(m/m)
(Max)
Inorganic
extraneous
matter, %
(m/m)
(Max)
Moisture,
% (m/m) (Max)
Total
ash, % (m/m) (Max)
Calcium
(as
calcium
oxide) %
(m/m)
(Max)
Volatile
Oil, %
(ml/100gm) (Min)
(1) (2) (3) (4) (5) (6) (7) (8) Special Standard
20.0 15.0
1.5 1.5
0.5 0.5
12.0 13.0
8.0 8.0
1.1 1.1
1.5 1.0
59
Annex 9: List of Importer from Bangladesh 1. M/S S.M. Trading
35, Haricharan Roy Road,
Dhaka-1100
Cell: +88-01912674647
+88-01727547409
Ph: +88-02-9552110
Fax: +88-02-7175174
Email: [email protected]
Proprieter: S. M. Rony
2. M/S B.M. International
35, North Brook Hall Road,
Dhaka-1100
Cell: +88-01711536284
+88-01971536284
Ph: +88-02-9552110
Fax: +88-02-7175174
Email: [email protected]
Proprieter: Milon Chandra Ghosh
3. M/S Al-Fayed Traders
38/6/1, North Brook Hall Road, Lakuthi (River side)
Dhaka-1100
Cell: +88-01819429881
+88-01720800270
Ph: +88-02-7122432
Proprieter: Md. Mahabubul Alam
4. M/S Bhai Banijjalay
Habib Mansion,
38/A, North Brook Hall Road (3rd
Floor)
Shambazar, Dhaka-1100
Cell: +88-01716217986
Ph: +88-02-9570172
Email: [email protected]
Manager: Ranabir Roy
5. M/S Sigdar and Sons
Shambazar, Dhaka-1100
Cell: +88-01675588516
+88-01711538163
Proprietor: Musharraf Sigdar
6. M/S Surma Traders
Shambazar, Dhaka-1100
Cell: +88-01815005339
Proprietor: Judong Shah
60
7. M/S Risan Enterprises
Shambazar, Dhaka-1100
Cell: +88-01711530473
Proprietor: Montu Miya
8. M/S Rajbhari Bhandar
Shambazar, Dhaka-1100
Cell: +88-01712103531
Proprietor: Majed
9. M/S Sanjida Enterprise
74 B. K. Das Road,
Dhaka
10. M/S Arif Enterprise,
Station para, Station Bazaar, Rohanpur, Gomastapur,
Chapainawabganj, Rajshahi
11. M/S K/L Internation
2/2-1, Chawk Circular Road,
Dhaka-1211
12. M/S Shahnur Trade (BD) Ltd
205/B, Fakirapul, Motijeel,
Dhaka
13. M/S Best solution
15, DIT road, East Rampura
Dhaka-1219
14. M/S Khalilullah
5 No. Municipals Tank Road,
Khulna
15. M/S Ideal Associates
43/1 Moneshwar, Zigatola
Dhaka-1209
61
Annex 10: List of importers in India 1. M/S Varun Choudhary and Son
Shop NO. D-1409, New Vegetable Market
Azadpur, Delhi-33
Cell: +91-9811009238
Proprietor: Varun Chaudhary
2. M/S Radhika Enterprises
536, Katra Ishwar Bhawan
Khari Baoli, Delhi-110006
Cell: +91-9212367763, 9811167763
Email: [email protected]
Proprietor: Sahil Kumar, Anil Kumar
3. M/S Dhirendra Prakash and Company
A-1171, New Subzi Mandi,
Azadpur, Delhi-110033
Cell: +91-9818086862, 9891069594
Proprietor: D.P. Sharma
62
Annex 11: Organization and individuals visited Name Company/Organi
zation
Position Address/Phone Type
Bangladesh
Md. Abdur
Rashid
Department of
Agriculture
Marketing
Deputy
Director
(MI)
Ministry of Agriculture, Khamarbari,
Farmgate, Dhaka
Tel: +88-02-9113059
Government
Kbd. Md.
Mozaffar
Rahman
Plant Quarantine
Wing
Department of
Agricultural
Extension
Deputy
Director
(Quarantine)
Ministry of Agriculture, Khamarbari,
Farmgate, Dhaka
Tel: +88-02-8127998
Government
Anarul Kabir Department of
Agriculture
Marketing
Deputy Chief Ministry of Agriculture, Khamarbari,
Farmgate, Dhaka
Tel: +88-02-9113059
Government
Md. Alamin Import Division
Trading
Corporation of
Bangladesh
Kwaraan Bazar, Dhaka
Cell: +88-01766535072
Government
Md. Abdul
Haliu
Bangladesh
Bureau of
Statistics
Deputy
Director
Agargoan, Dhaka
Cell: +88-01717250549
Government
S. M. Rony S.M. Trading Proprietor 35, Haricharan Roy Road,
Dhaka-1100
Cell: +88-01912674647
Importer
Milon
Chandra
Ghosh
B.M.
International
Proprietor 35, North Brook Hall Road,
Dhaka-1100
Cell: +88-01711536284
Importer
Md.
Mahabubul
Alam
Al-Fayed
Traders
Proprietor 38/6/1, North Brook Hall Road,
Lakuthi (River side)
Dhaka-1100
Cell: +88-01819429881
Importer
Ranabir Roy Bhai Bhai
Banijjalay
Manager 38/A, North Brook Hall Road (3rd
Floor)
Shambazar, Dhaka-1100
Cell: +88-01716217986
Importer
Musharraf
Sigdar
Sigdar and Sons Proprietor Shambazar, Dhaka-1100
Cell: +88-01675588516
Importer
Judong Shah Surma Traders Proprietor Shambazar, Dhaka-1100
Cell: +88-01815005339
Commission
Agent
Salam Salam
Enterprises
Proprietor Cell: +88-01727389890 Commission
Agent
India
Raju Kholi Chamber of
Youth
Association
President
A-242, New Subzi Mandi,
Azadpur, Delhi-110033
Cell: +91-9810123534
Varun
Chaudhary
Varun
Choudhary and
Son
Proprietor Shop NO. D-1409, New Vegetable
Market
Azadpur, Delhi-33
Cell: +91-9811009238
Importer
63
Sahil Kumar Radhika
Enterprises
Proprietor Khari Baoli, Delhi-110006
Cell: +91-9212367763, 9811167763
Importer
D.P. Sharma Dhirendra
Prakash and
Company
Proprietor Azadpur, Delhi-110033
Cell: +91-9818086862,
Importer
Nepal
Bikesh
Chitrakar
Sector Analyst Samarth-
NMDP
Patan Dhoka, Lalitpur
Dr. Deepak
Mani Pokhrel
Ginger
Competitiveness
Project
Project
Manager
Dhulabari, Jhapa
Narendra
Khadka
NGPTA Chairman Dhulabari, Jhapa Exporter
Hemanta
Bohora
NGPTA Secretary Dhulabari, Jhapa Exporter
Satyam
Khadka
NGPTA Dhulabari, Jhapa
Indra Bahadur
Buddhathoki
NGPTA General
Secretary
Dhulabari, Jhapa
Trader
Rajendra
Kharel
District
Agriculture
Development
Office
Plant
Protection
Officer
Bhadrapur, Jhapa Government
Sanjeev Shah Dhulabari, Jhapa
Exporter
Rajesh Shah Dhulabari, Jhapa Exporter
Khem
Pokhrel
Ilam Trader
Vijay Lal
Karna
Bhanu Dutta
Mishra
Budur Jha
Plant Quarantine
Office
Kakarbhitta, JHapa Government
Shyam Limbu Custom
clearing
agent
Kakarbhitta, Jhapa Clearing
Agent
K. N.
Malhotra
Rijal Tashi
Industries Pvt.
Ltd.
General
Manager
Itahari, Sunsari Processor
Prakash
Shrestha
Kalimati, Kathmandu Trader
Rajendra
Adhikari
Nepal Spice
Crop
Development
Board
Khumaltar, Lalitpur Government
Purshottam
Ojha
SAWTEE Sr.
Consultant
Baluwatar, Kathmandu Regional
NGO
Nijamuddhin
Raina
Nepalgunj, Banke Exporter
Jamal Khan Plant Quarantine
Office
Rupidhia, Banke Government
64
Nadeem
Ahmed
Plant Quarantine
Office (India)
Plant
Quarantine
Officer
Rupaidhia
India
Government
Sushil Kumar Indian Custom Rupaidhia, India Government
Hajiz-Ur-
Rehman
Ansari
Nepalgunj, Banke Clearing
agent and
trader
Tank Prasad
Sharma
Gayatri Trade
Center
Nepalgunj, Banke Trader
Rabindra N.
Shukla
Satya
International
Nepalgunj, Banke Trader
Bimal Nepal Trade and
Export
Promotion
Center
Deputy
Executive
Director
Lalitpur Government
65
Annex 12: Region wise production and area of ginger in Bangladesh from 2006/7 to 2013/14 SL Name of
Zila/Region
2006-07 2007-08 2008-
09
2009-
10
2010-
11
2012-13 2013-14
Area
(Acre)
Prod (MT) Area
(Acre)
Prod
(MT)
Area
(Acre)
Prod
(MT)
Area
(Acre)
Prod
(MT)
Area
(Acre
)
Prod
(MT)
Area
(Acre)
Prod
(MT)
Area
(Acre)
Prod
(MT)
1. Bandarban 1180 2840 1306 3380 1207 3194 1334 3585 1381 3637 1415 2822 1423 3168
2 Chittagong 1990 9235 12346 11102 1664 7069 1704 7263 1731 7373 1745 7480 1851 7591
3 Comilla 190 295 153 290 156 321 152 331 164 389 135
4 Khagrachari 1890 6005 1979 5701 2071 5741 2145 6316 2108 6519 2160 6552 3239 10860
5 Noakhali 75 80 67 67 69 68 82 82 80 85 47 49 47 44
6 Rangamati 2615 8780 3368 14282 3600 15628 3671 15588 3791 16383 3873 16721 4095 17754
7 Sylhet 260 615 280 703 290 639 303 890 316 807 292 698 313 683
8 Dhaka 1000 1470 1029 1520 1012 1487 974 1398 1073 1611 1074 1687 1086 1804
9 Faridpur 255 235 149 180 135 182 121 172 89 172 52 91 54 78
10 Jamalpur 695 2630 709 2627 708 2746 712 2756 714 2252 687 2570 545 1984
11 Kishoreganj 380 735 404 818 382 742 377 730 392 757 352 704 358 720
12 Mymensingh 1125 2500 1335 2480 1134 2534 1136 2422 1143 2598 1120 2537 1109 2546
13 Tangail 2180 8980 2114 8312 1988 7394 2007 7527 2058 7778 1935 6864 1843 6286
14 Barisal - - - - - - - - - - 0 0 0 0
15 Jessore 260 655 285 695 257 639 270 727 295 803 283 724 264 699
16 Khulna 200 560 230 646 256 693 221 615 125 281 118 284 114 283
17 Kushtia 185 595 157 427 150 453 133 403 158 503 144 501 158 591
18 Patuakhali - - - - - - - - - - 0 0 0 0
19 Bogra 310 565 318 575 323 583 333 604 353 631 323 594 324 577
20 Dinajpur 1460 7415 1560 8522 1499 7393 1433 6736 4691 6334 1172 3785 1160 3563
21 Pabna 185 365 179 321 167 315 159 303 161 320 161 333 167 340
22 Rajshahi 235 555 243 593 235 582 230 550 234 515 170 366 179 396
23 Rangpur 3935 8215 5058 13805 4979 14196 4906 15843 4692 14582 4836 13173 5019 16799
BANGLAD
ESH
20605 63325 23269 77046 22282 72608
22403 74841 22527 74380 22094 68855 23472 77035
66
Annex 13: Monthly and yearly average wholesale price of local and imported ginger of Bangladesh Monthly Average Wholesale Price
(Per Quintal/Taka)
Name of
Commodity
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg
Ginger Local 2009 4228 4193 4550 4838 5139 6004 5978 6467 6882 5467 5506 5425 5390
Ginger
Import
,, 4843 4625 4499 4236 4321 5311 5426 6157 6854 7257 7445 7143 5676
Ginger Local 2010 5,843 5,929 6,409 7,456 8,341 9,417 10,453 10,786 11,505 10,178 9,441 7,940 8642
Ginger
Import
,, 7,361 7,384 7,350 8,137 8,398 9,491 10,570 10,360 11,668 12,247 13,570 11,883 9868
Ginger Local 2011 7,183 6,831 6,517 6,572 6,710 6,692 6,725 7,258 6,450 5,570 6,020 5,401 6494
Ginger
Import
,, 9,577 7,860 7,051 6,684 6,574 6,558 6,876 6,526 5,918 5,942 5,993 4,931 6708
Ginger Local 2012 4,226 4,567 4,452 4,638 4,825 5,153 5,776 6,202 6,737 7,089 6,102 6,046 5484
Ginger
Import
,, 5,395 5,238 4,715 4,728 5,111 5,415 5,701 5,283 5,272 5,348 5,131 5,216 5213
Ginger Local 2013 6,133 6,690 6,587 8,034 10,614 10,534 11,700 13,287 13,534 13,408 12,070 11,729 10360
Ginger
Import
,, 6,374 7,529 6,603 6,994 8,385 7,762 8,604 11,944 12,848 12,233 12,625 12,952 9571
Ginger Local 2014 9,838 9,641 10,609 14,267 13,788 16,599 16,358 15,023 15,307 14,513 12,607 - 13505
Ginger
Import
,, 12,82
4
11,29
7
11,990 15,240 14,875 17,301 16,255 14,913 14,986 14,717 10,714 - 14101
1