The supply chain for exporting ginger from India goes through these steps:
1. Producer → Village Merchant → Wholesale Merchants → Retailers/Exporters
In this traditional and most common channel of exporting, village merchants purchase the crops from farmers at an agreed price and sell the crops to regional or local wholesalers. Final retailers from each region or the state purchase the products as per the requirements from wholesalers and can sell to exporters too. Many times exporters purchase directly from wholesalers or even merchants if the requirement is big for a season or order.
2. Producer → Village Merchant → Auctioneers (via Agents)/Mandi → Exporters/Retailers
Village merchants after purchasing from farmers auction the product at a trading point. The auctions are conducted by trading agents or auction agents who have the authority to manage the auctions at specific locations. Exporters and retailers purchase the product from these auctions at a fixed price, which is decided according to the demand and available supply for the day.