China Thailand Indonesia Brazil Taiwan Costa Rica Nigeria India Others
Figure 12.4 Country-wise contribution (%) to world ginger market (2000).
the use of the bleaching agent sulfur dioxide has adversely influenced Chinese exports to Europe and North American countries. In the Middle East, however, it is still widely used. Nigerian ginger is particularly used for oil extraction (ITC, 1995). As mentioned earlier, except in the case ofJapan and the United States no separate statistics are available for the three different forms of ginger traded.
In order to see the trend in returns from trade earned by the exporting countries, Datta et al. (2003) has used a simple index (VADD) defined as:
VADD = unit value of exports — unit value of imports
Unit value of exports = (total value of exports/total qty. exported
Unit value of imports = (total value of imports/total quantity imported)
They have ranked all countries in terms of VADD in decreasing order and reported that:
• out of the top 15 countries, only three belong to the producer-exporter group. The rest all are from the reexporters group;
• Only two are the traditional producers.
• Of the major producers, India ranked 40th with a VADD of 0.38, followed by China at 44 th place with a VADD of 0.21. In the case of Indonesia, the estimate for VADD turned out to be negative at (—)0.13, meaning that Indonesia imported ginger at a higher unit value than at which it exported.
• Thus, reexporters have, in general, succeeded in achieving a greater value addition to their export of ginger into the world market.
As it can be seen from Table 12.10, the unit price (US $2.18/kg) earned by the European Union (EU) countries (reexporters) from export is much more than the average unit price (US $1.53/kg) earned by other producer exporters to EU countries. The Netherlands, Germany, and the United Kingdom are the major reexporters of ginger in Europe.
The world scenario viewed from the Indian perspective provides a complex situation for the ginger economy. India, being the largest producer of raw ginger in the world, has the potential to play a major role in the world trade for ginger. However, the potential is yet to be realized and the position has remained stagnant over the years in terms of the contribution to the total world export of ginger. Table 12.11 shows the export of ginger from India from 1970 to 2000. During 1970 to 1971, it was only 3156 tons, earning foreign exchange worth Rs. 26.094 millions. Then it further rose to 29,737 tons during 1996 to 1997 with a foreign exchange earning of Rs. 5 92.441 millions. Figure 12.5. shows the increasing trend of both the production and export of ginger over the years. However, the quantity exported as the percentage of the total production has gone down to less than 5% in recent years.
Datta et al. (2003) has analyzed the export performance of the Indian ginger economy between 1961 and 1996 and has the following features.
Was this article helpful?