Ginger Guide

The below chart shows Strengths, Weaknesses, Opportunities, and Threats for Indian ginger in the global 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

One of the country's examples of a still-growing ginger market was Nigeria. Nigerian ginger is mainly produced utilizing traditional methods, using manual labor in order to plant, harvest, and process the ginger. Recently, there have been efforts made in order to mechanize the process and remove human elements from production. More than 90% of the ginger is sun-dried, but with the incorporation of dryer machines, the processing time is reduced from 4-10 days to 4-5 hours. These drying machines can significantly increase the quality of the products, but with the burden of extra costs. With Nigeria’s expansion into the international market, quality control has been a consistent issue, and measures are being taken in order to raise the quality of the products.

Aflatoxins accumulate when products such as ginger are not dried properly and fungal infection occurs, which has limited Nigeria’s yield and entrance into the international market. Some companies are beginning to use Aflasafe on their crops in order to reduce the number of toxins, and are educating farmers about ineffective production methods. There are efforts to increase yields as well, with the help of better varieties. Nigeria ranks first for the largest cultivation area of ginger, 56.23% of the world's total area under ginger, but has yet to create the amount of output viable to export extensively to the global market.

The import tariffs for the top 6 trading partners range from 0% to 10%.

Source: Tridge

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. 

Farm -> factory -> export company/trading company

There are several cultivars of ginger harvested in India but the prominent ones are Madhya Pradesh, Maharashtra, Gujarat, and Karnataka. There are middlemen involved in the supply chain, mostly from the Madi area. However, they do not play a big role when it comes to exports. Some exporters have their own processing and packing facilities. 

Value Chain: 

Growers – Exporters – Sourcing companies at destination countries - Distributors & Retailers in destination countries

The roots of ginger are harvested in the field and transported to the processing base, where ginger is classified, washed, disinfected, and dried.

• Most ginger is grown in small family owned-farms.
• Major exporting and trading companies buy ginger from small-sized farms and export ginger to other countries.

• Competition among different exporting and trading companies is rigid and hostile.

Main producing regions are Southern India (Karnataka state) and North-East India (Mizoram state). Major ginger-producing regions in India are concentrated in the northeastern, eastern, and western regions. 

The leading states producing around 90% of the ginger in the country are Madhya Pradesh, Karnataka, West Bengal, Assam, Maharashtra, Orissa, Gujarat, Sikkim, Kerala, and Meghalaya.

 Indian Ginger Production in 2021-2022 by state 

Source: National Horticulture Board (NHB)

The most prevalent types of ginger are Baby ginger, Blue Hawaiian ginger, White ginger, and of course the Yellow ginger.

• Baby Ginger; also known as the green ginger, pink ginger, spring ginger, young ginger, stem ginger, or new ginger is usually candied and stored in some type of basic syrup. It is very commonly used in baking and pastries, and it can be used in everything from seasoned butter to minced meat.
• Blue Hawaiian Ginger; This type of ginger is compact, low in fiber, and bluish in color. It is somewhat bigger than other types of ginger, and it can turn from blue to purple as it matures. The interior color is beige, and it has a pungent aroma.
• White Ginger; White ginger is also called African ginger, and it is a large Indian herb that is cultivated for its beautiful white, fragrant flowers. The rootstock is frequently dried and scraped before being used in various recipes.
• Yellow ginger; is the most common type of ginger root used in the United States for recipes. It is good for healing wounds, various types of pain, and even skin infections. Yellow ginger is an analgesic that is also anti-inflammatory, so it is a food product that serves numerous purposes.

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

In 2022, the top 10 importing countries of Indian ginger are Bangladesh, Morocco, United Arab Emirates, United States, Saudi Arabia, Egypt, Nepal, Yemen, Indonesia and China.

Source : Tridge

In 2021, the largest importers were (1) Netherlands (USD 20.97M), (2) United States (USD 14.51M), (3) Russia(USD 3.32M), and (4) Argentina (USD 2.67M).

Share of Export Destinations Brazilian Ginger

Source: Tridge

Notable importing countries are:

•  Netherlands +27.28% YoY (2021): 
  

• The Netherlands is a lead importer of Brazilian ginger and the largest importer and trader of ginger in Europe. Its imports increased in volume by 10.3% annually between 2016 and 2020.
  

• Russia +91.17% YoY (2021): 
• Brazilian ginger in the Russian market is second to China, albeit the import of whole ginger from Brazil is rising. From 2016-2021, it marked a significant growth of 504.12% and achieved 20.49% of the import share.

In terms of non-crushed ginger, China, the Netherlands, Thailand, Peru, India, the UAE, Brazil, and Nigeria are the top exporting countries, with the share in world exports amounting to 59.6%, 11.2%, 6%, 4.4%, 3.5%, 2.9%, 2.4%, and 1% respectively.

In terms of crushed ginger, China, India, Germany, the Netherlands, Vietnam, the UAE, and Spain are the biggest exporting countries, with the share in world exports amounting to 35.5%, 13.9%, 10.8%, 4.8%, 4.6%, 3.5%, and 2.6% respectively. 

Brazilian Ginger is grown in two central regions of the country, with 60% of the production located in Espírito Santo and 40% in São Paulo and Santa Catarina.

Brazilian Giant Ginger Root

Source: Tridge EM

Ginger grown in Brazil is the Zingiber Officinale variety, the primary type of Ginger found in most stores. With outstanding quality, Brazilian Ginger stands out globally, becoming increasingly sought after for import. Of having favorable soil, altitude, and climate for the planting of Ginger, Espírito Santo has become the largest producer in Brazil.

The main varieties of Indian Ginger are Ing Makhir, Rio-de-Janeiro, Thingpui, Wayanad, Maran, and Nadia.

1. Ing Makhir: This variety is grown in Meghalaya and is one of the most potent, with a high ingerol content. Sleek, slender and highly fibrous in nature, it is typically utilized to manufacture dry ginger powder.

2. Rio-de-Janeiro: Rio-de-Janeiro is one of the popular varieties of ginger. This variety can be identified by certain characteristics. The size of the rhizome is bold while the colour of the skin is buff. Also, Rio-de-Janeiro is pungent, known for high flavour and is less fibrous. Introduced from Brazil, it is one of the two exotic ginger varieties in the country and is known to produce higher yields compared to local varieties available. Rio-de-Janeiro is not commonly used as dry ginger.

3. Thingpui: Thingpui is one of the varieties of ginger grown in India. This variety of ginger is pungent. The size of the rhizome of the Thingpui is said to be medium. The colour of the skin can be identified as a buff. Thingpui is less fibrous and has a high amount of flavour. It is one of the two ginger varieties that are indigenous to Mizoram state. Thingpui has a unique taste and aroma.

4. Wynad: Wynad is a variety of ginger, one of the earliest known oriental spices. The size of the rhizome of Wynad is bold. The colour of the skin is buff like many other varieties of ginger. It is pungent and less fibrous. It is commonly found in Kerala. Wynad is offen used as dry or green ginger. 

5. Maran: Maran is a variety of ginger which is pungent and has a high flavour. The size of the rhizome of the Maran is said to be medium. The colour of the skin of Maran is buff and this variety of ginger is less fibrous. It is popular variety known to produce high yields. Maran is used as dry or green ginger and known to be highly suitable for oil and oleoresin extraction as well. 

6. Nadia: Nadia is a type of ginger which is yellowish in colour. The size of the rhizome is said to be medium to bold for the Nadia variety of Ginger. Nadia is moderately pungent and mild flavoured. It is also less fibrous compared to other varieties of Ginger. It is also known as ‘Ing Bah’ and grown in Meghalaya. The skin is smooth and light brownish with a pale-yellow flesh. Nadia is known to give a higher yield and can be used as dry and fresh ginger.

There are two main ports in India, which are the Southern East part of India and North-Eastern India. During the first half of the year (Jan - Jun), ginger is produced in southern India so Chennai becomes the main port. In Southern East India, Chennai Mangrove is the closest port to the producing region and packing facilities. In Northern India, Mumbai is the main port. Although the port is far from the main producing regions, Mumbai is a highly preferred port for exporters because of the transportation/container availability. Both airfreight and seafreight are used for international logistics. The preferred method is the seafreight while for time-constraint orders, airfreight is used.

International logistics: Brazilian ginger is mainly sent via sea, the quantity of MT per FCL will depend on the size of the boxes, but it varies from 17 to 19.4 MT. The main loading ports are Rio de Janeiro and Santos.

Local logistics: As the ginger is grown by numerous small farmers, the supplier/exporter buys from various farmers to make one FCL.

After confirming the orders, traders provide the boxes for farmers.

In a week or longer, all the boxes are gathered to prepare the container at the packing house, and local logistics are done by truck.

3 layered or 2 layered air circulating cardboard boxes is the norm.

Indian Ginger is usually packaged in the following materials:

1. Mono Carton Boxes

2. Pouches

3. Zip lock Bags

4. Plastic Pet Jar & Tin

Packaging sizes include:

- 10g, 20g, 50g, 100g, 200g, 500g, 1kg, 5kg, 10kg, 25kg

Myanmar exports ginger in these packages: 

• Mesh bag, Carton Box, PVC Box
• 1 x 40 ft Container: 25-27 MT (Mesh bags)
• 1 x 40 ft Container: 15-18 MT (Carton Box and PVC Box)

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.

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

 For fresh ginger, moisture content, impurities, pesticide report, and phytosanitary certificates are usually needed. 

A phytosanitary certificate by the P&Q department is required and depending on the destination of export, some other certificates may be required as well. 

Other than phytosanitary certificates -> Taiwan / European Union, America go by USDA FDA standards.

The most common quality-related issues are moisture content, color, size, and sprouting. Desired quality characteristics include skin color; plumpness of tuber pieces; sheen on skin; and absence of vegetative sprouts, blemishes, soil, and insect injury.

Measures of Ginger 

• It shall be dried rhizomes of Zingiber officinale Rose, in pieces, irregular in shape, pale brown in colour.

• Its fibrous content shall be characteristic of the variety with peel not entirely removed.

• It shall be lime bleached.

• It shall have characteristic taste and flavour and shall not have a musty odour or a rancid or bitter taste.

• It shall be free from added colouring matter. It shall be free from mould growth and living insects and practically free from dead insects, insect fragments and rodent contamination.

• It shall comply with restrictions in regard to Aflatoxins, Metallic Contaminants, Insecticide or Pesticide residue, poisonous metals, naturally occurring Contaminants, Microbial load and the like as specified by the Codex Aliment Arius Commission or as per buyers requirements for Export purposes and the Prevention of Food Adulteration Rules, 1955 for domestic trade.

Source: India Ginger 

Documents required for the export of Brazilian ginger vary depending on the target market. Before proceeding with the export of ginger from Brazil, registration with Decex (Department of Foreign Trade, MIDC) is obligatory. Also, export registration through SISCOMEX is necessary.

General requirements for most countries are:

• Phytosanitary certificate
• Commercial invoice
• Packing list
• Bill of landing
• Certificate of Origin

The specific documentation required may vary based on the destination country and the terms of the export agreement. Here is a list of common documents required for exporting ginger from India:

•  Importer/Exporter Code from Directorate General of Foreign Trade

• Commercial Invoice
  

• Packing List
  

• Certificate of origin
  

• Mate Receipt
  

• Shipping Bill

• Bill of handing

• Bill of Lading / Airway Bill

• GR Form: Documents required by the Reserve Bank of India (RBI) assures that the exporter will realize the proceeds of goods within 180 days from the date of Shipment.

• Agricultural and Processed Food Products Export Development Authority (APEDA) registration of exporter

• Plant and Quarantine Registration certificate (Phytosanitary Certificate) from Directorate of Plant Protection Quarantine and Storage for export consignment

• GLOBAL GAP Certification of exporter and producer

• Organic certificate for the owner of farm/nursery from Agricultural and Processed Food Products Export Development Authority (APEDA) if the produce is organic and labeled as organic ginger produce for export

• Health Certificate, as per destination requirement

• Certificate of Analysis, as per destination requirement

Several factors such as where the ginger has originated, the quality, the cost of production and transportation, etc determine the price of ginger in the market. Chinese ginger is generally a cheaper counterpart to other products from export markets. The quality of ginger can be affected by various factors such as its production method, the types of ginger roots, fertilizer, pesticides, soil, and weather conditions.

In addition, the winter season is generally the high season for ginger. Export prices increase in the weeks ahead of the Chinese New Year. After that, the business focuses again on exports and prices tend to stabilize. The cost of production is also a big factor in determining the price. On the international market, a tonne of ginger generates between 6,000 and 7,000 dollars. In Nigeria, that price stands at USD 3,500 as a result of the cost of local production. Moreover, the cost of transportation and processing methods (the freezing storage temperature and quality factors associated with color, odor) also contribute to the cost. 

The total export value of ginger is constantly growing since 2016. For whole ginger(HS code 091011), export volume grew from USD 611.41M in 2016 to USD 1.27B in 2020. For ground or crushed ginger(HS code 091012), there has been an increasing trend until 2020. The total export value of crushed ginger was USD 94.86M in 2016, and USD 1.14B in 2020. 

• Brazilian ginger exports are strong in the first half of June before Peruvian ginger is exported.
• Brazil loses a lot of the market share to Peru from mid-June to July. Still, once Peruvian ginger volume decreases, Brazilian ginger gains more market share in August and peaks around September.
• Exports stay strong until the end of the season.

• Exports from mid-November to December are residual exports.