The soaring price of ginger, hitting an unprecedented high of Rs 13,500 per 60 kg sack in various parts of Karnataka, brought despair rather than joy to thousands of ginger farmers in Kerala. Financial constraints forced them to harvest their crops earlier, missing out on the current price surge. Wayanad, where ginger was priced around Rs 10,000 on July 4, witnessed a drastic increase throughout the day, with traders aggressively buying to meet the demand. Last year, the price per sack was below Rs 2,000.
The decline in ginger prices has resulted in a significant migration of farmers from Wayanad to neighboring regions in Karnataka. These water-rich areas offered a refuge for farmers seeking alternatives, including high-profile professionals who had invested in ginger cultivation. However, the majority of farmers faced bitter disappointments, leaving traditional farmers with the opportunity to thrive.
Over the past four years, the continuous drop in ginger prices has led to a significant reduction in the number of ginger farmers, from over 30,000 to just over 10,000. A decline in ginger cultivation area has also contributed to the current shortage in the market. Many farmers chose to harvest their crops when prices reached Rs 5,000 a few months ago, fearing further decline. Among the lucky few who retained their harvest, only 5% are expected to make a profit, while the majority remain burdened with debt.
Despite the price surge, some resourceful farmers with substantial harvests of 10 to 100 acres are expected to earn substantial profits this season. However, considering the rising costs of labor and fertilizers, the current price is only justified. Cultivation costs per acre range from Rs 5 to 6 lakh, and for farmers to make a marginal profit, prices should exceed Rs 2,000 per sack. Last year, the highest price reached a mere Rs 2,300 for a few days, with instances of selling crops as low as Rs 400 per sack. Only the most resilient farmers have survived the challenging market conditions and extreme climate.
Ranjan Sami, an experienced ginger farmer, points out the significant increase in production costs over the years. In 2003, when ginger prices were Rs 3,000 per sack, the cost of production was much lower. Labor wages, fertilizers, land lease rates, and transportation expenses have all seen substantial hikes. Despite the challenges, farmers are relieved that a few of them will be able to settle their debts and make some profits for the future.
Wayanad farmers had previously gained attention when they ventured into farming in distant villages of Chhattisgarh, Odisha, and Jharkhand. In 2015, when ginger prices crossed the Rs 11,000 mark, many farmers and laborers from Wayanad traveled to these far-flung regions. Now, with the current price surge, many are considering returning to Chhattisgarh to explore further farming possibilities.
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