On-the-Ground Update

The preference of ginger and turmeric suppliers to sell the commodities domestically

Arif Sukmawan
Published Jul 23, 2020
Due to the current high price of ginger and turmeric in the local market at USD 100/Kg, the majority of ginger suppliers and exporters in Indonesia now prefer to keep their distribution domestically as the national price is better than the export reference price at USD 70/Kg. These suppliers mentioned that, business-wise, the current national business climate is more profitable for them and also more practical as they can save time by not needing to fill up and process the export paperwork. Moreover, the demand for ginger and turmeric from the national consumers has also remained consistently high in the early weeks of the third quarter of 2020, just as the first half of 2020 when the demand reached its highest record over the past 3 years. Currently, around 80% of the total production output of ginger and turmeric has been sold and distributed domestically.
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