Guide

Myanmar Ginger Guide

Whole Ginger
Myanmar [Burma]
Published Aug 30, 2021

Market Penetration Strategy

What Advantage does Myanmar Ginger Have in The Ginger Market?

Myanmar ginger has several competitive advantages that set it apart from other suppliers and countries in the ginger market:

1. Unique Flavor and Aroma: Myanmar ginger is renowned for its distinctive flavor and aromatic qualities. Its slightly spicy and warm flavor profile makes it a favored choice in various culinary applications and adds a unique touch to dishes and products.

2. Quality and Appearance: Myanmar ginger is often associated with high quality and an attractive appearance. It typically has a smooth, golden-yellow skin that is visually appealing to consumers. This aspect can make it stand out on the market.

3. Competitive Pricing: Myanmar's ginger production can be cost-competitive, which can be advantageous for buyers and consumers looking for economical options. Myanmar has competitive advantages over China and India in the agricultural production sector, that is, large arable land resources, sufficient water resources, and cheap labor, making it possible to produce the ginger at a lower cost of production and offer lower prices than China and India (Raitzer et al., 2015).

4. Availability and Steady Supply: Myanmar's favorable agro-climatic conditions allow for year-round ginger cultivation. This consistent supply of ginger can be beneficial in meeting the demands of both domestic and international markets.

5. Natural and Sustainable Farming Practices: Many Myanmar ginger growers use traditional and sustainable farming practices, which can be appealing to consumers looking for natural and eco-friendly products.

6. Export Potential: The ginger industry in Myanmar has been growing, and the country has the potential to expand its ginger exports further, particularly to neighboring Asian countries. Its proximity to regional markets can be an advantage in terms of logistics and transportation. Apart from that, Myanmar belongs to the status of the Least Developing Countries (LDCs) and, therefore, it has Special and Differential Treatment (SDT) in exporting its products to industrialized countries such as the EU, Japan, and the US under the initiative of “Everything But Arm” (EBA). The EU is the largest importer of spices, followed by North America, then Eastern Asia.

More importantly, the majority of the origin of imported EU spices are from developing countries, and the tariff on raw materials, particularly from the LDCs is generally low, providing a great opportunity for Myanmar fresh ginger to be exported. In addition, the tax for the export of goods from Myanmar is only 2%.

7. Regulatory Compliance: Myanmar ginger producers and exporters can align with international quality and safety standards, ensuring that the ginger meets the requirements of global markets. International Organizations such as Windrock International, International Labour Organization (ILO), and UNDP are providing research and training that focuses on providing ginger farmers with better information on the safe use of agrochemicals and other occupational safety and health (OSH) related information that can improve working conditions, as well as empower government stakeholders including the Department of Agriculture.

It's important to note that while Myanmar ginger has these competitive advantages, it also faces competition from other ginger-producing countries like China, India, Thailand, and others. The competitiveness of Myanmar ginger in the global market is influenced by factors such as quality control, pest and disease management, trade regulations, and the ability to meet the specific requirements of target markets.

To maintain and maximize its competitive advantages, Myanmar's ginger industry should focus on continuous quality improvement, sustainable farming practices, and the ability to adapt to changing market dynamics and consumer preferences. Additionally, market research and understanding the needs and preferences of target customers are essential for sustained success in the ginger market.


Source: Upgrading options for Myanmar Fresh Ginger Value Chains

Production Supply Chain

What is The Value Chain of Myanmar Ginger?

In the current Myanmar fresh ginger value chains, there are two types of value chain maps. The first is the traditional value chain, which encompasses various actors ranging from input providers to importers in foreign markets and, finally, consumers in domestic markets. Input providers, farmers (producers), village collectors, merchants, agents, wholesalers and retailers, and end consumers in domestic and international markets are all involved in the chain. Farmers, traders, and exporters are among those who play an important role in the chain. 

The chain has four phases; input supply, production, trading, and exporting. During the production stage, Winrock International assisted ginger farmers with technical elements of production and associated with traders for high bargaining power. There are two major fresh ginger exporters in the chain. Due to modest requirements and a good relationship between the exporter and importer, the trader who exports to Bangladesh has become the largest fresh ginger exporter in Myanmar in recent years. The majority of the actors in the chain are based in Southern Shan State, which is Myanmar's main ginger production and trading area. A variety of actors participate in the trading stage, including dealers, agents, village collectors, wholesalers, and retailers. 


                                                                Figure 1 Traditional Fresh Ginger Value Chain Map in Myanmar


The emerging value chain or a pesticide-free fresh ginger value chain, as shown in Figure 2, only four actors are involved: input suppliers, farmers, exporters, and importers. The remaining actors are avoided due to the nature of the chain, which requires direct collaboration between farmers and exporters. The pesticide-free fresh ginger indicates ginger with an acceptable amount of insecticide and herbicide residues. Certain amounts of chemical fertilizer are permitted throughout the production stage, but no pesticides or herbicides are permitted.  Farmers in this category take the lead in working with exporters and managing each other to avoid using chemical pesticides. 

Figure 2 Qualified Pesticide-Free Fresh Ginger Value Chain Map in Myanmar


    Source: Upgrading options for Myanmar Fresh Ginger Value Chains


    Seasonality of Main Producing Regions

    What Region of The Country is Myanmar Ginger Produced?

    There are over 15,000 acres of ginger cultivation in Myanmar. Shan State is the main producer of ginger with over 12,000 acres, followed by Chin State (over 2,400 acres), according to the statistics provided by the Ministry of Agriculture, Livestock and Irrigation. The major production area is Southern Shan State where about 90 % contributes to national production along with its annual average production of 60,000 metric tons. Kalaw, Aung Ban and Hopong townships are the major ginger-growing areas in Southern Shan State. In these areas, ginger is grown as a major cash crop by the smallholder farmers by rotation with upland rice and other crops.

    The other ginger-growing areas are Pinlaung, Pindaya, Taunggyi and less grown in Chin State, Mandalay Region and Ayeyawady Region.


    Source: Winrock International, 2016

    What is The Grading System of Myanmar Ginger?

    Sorting and grading are carried out depending on the size, color, and shape of the rhizomes as follows;



    Source: Upgrading options for Myanmar Fresh Ginger Value Chain

    What Variety of Myanmar Ginger is Produced and Exported?

    Generally, three types of ginger varieties are found in Myanmar, but the names of variety are differentiated by the regional name regardless of analysis of oleoresins, oil content, fiber, or dry matter content of each.

    • The “Rangoon" variety with low fiber and water content has medium pungency and is preferred by the processors for making dried ginger because this variety gives a higher percentage of dried ginger yield. The variety is medium in size and has well-spread fingers.
    • The “Chinese" variety is preferred by fresh ginger traders as it is less pungent and has high water content. The rhizome is large and has a pale yellow color.
    • The “Pink" ginger is a small, wild type of ginger and is used for making traditional medicine and beverages. 


    Source: Upgrading options for Myanmar Fresh Ginger Value Chain

    Trade Overview

    What is the current production capacity of Myanmar ginger?

    According to the Myanmar Department of Commerce, the annual ginger production totals nearly 60,000 metric tons, representing the great potential for both domestic and international markets. Its supply chain involves a wide number of actors, each with a role to play in making a safer and healthier chain.


    Source: Myanmar Department of Commerce

    Which countries are main importers for Myanmar?

    The top importers of Whole ginger(HS code 091011) from Myanmar is Bangladesh, China, and Thailand. For Ground or crushed ginger(HS code 091012), India is the main importer according to 2022 data. 
    • Whole Ginger Import markets for Myanmar




    • Ground or Crushed Ginger Import markets for Myanmar




    Regulations in Exporting Country

    What is the process of Myanmar ginger from farmers to export?

    As presented in the ginger production section, ginger farmers in Myanmar harvest the mother rhizomes traditionally, getting two harvests during one ginger season, which gives the farmers two incomes. However, the exporter does not recommend the harvesting of mother rhizomes, which could have an impact on the quality of ginger in the main harvest as well as have more chances of disease spread by causing injury to the plants. The exporter takes responsibility for the post-harvest process including collection of ginger from farms, cleaning, sorting, washing, drying, and packing. With the support of Winrock International, the exporter has invited the farmers to visit the factory where the farmers can see and have the chance to understand how to manage the post-harvest process in order to make sure that the product meets the market requirements


    Fresh ginger is transported by ship, which normally takes a month and the buyers make the payment only after receipt of the products. The exporter does not need to wash the ginger but cleaning, such as removing the soil and residues, is adequate for exporting fresh ginger to Bangladesh. Other requirements for overseas trade are phytosanitary certificate, country of origin (C/O), packing list, commercial invoice, insurance, inspection certificate of weight and quality, and radiation certificate. The phytosanitary certificate has to be obtained from the Plant Quarantine section at the Plant Protection Division of the Department of Agriculture through an application procedure. The exporter uses a service of an agency that provides services for that kind of application to the government office.


    Source: Upgrading options for Myanmar Fresh Ginger Value Chains

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