A Ginger Oleoresin plant in Sikkim is commercially viable: EXIM Bank


GANGTOK, September 3: The EXIM Bank has listed lack of local availability of packaging material of international standard and lack of refer facility with direct transportation to Kolkata port as major problems that have inhibited exports of fresh ginger of Sikkim.

This is despite the fact that Sikkim among the major producers of ginger, contributing to about 5 percent of the country’s production.

The other problems hindering the export potential of Sikkim are lack of refer facility with direct transportation to Kolkata port, no pre cooling plant and integrated packing houses, manual cleaning process and dearth of warehousing facilities for keeping produce immediately after harvesting, said the Bank.
All these shortfalls need to be suitably addressed, said the EXIM Bank in its study report ‘Sikkim-Export Potential and Prospects’.

“Ginger is largely grown in Sikkim for exports as green ginger. Even though improved varieties with less fibre are available to the grower, they continue to rely on the local fibrous Bhaisey (large rhizome) and Majhauley (mid-size rhizome)”, the report states.

It is mentioned that the quantum of ginger going out of the State is estimated at roughly 25,000 tons and about 30 percent of produce is retained as seed.
The major markets of Sikkim ginger are Delhi, Punjab, Uttar Pradesh and West Bengal while most of the exports of Sikkim ginger that currently occur are indirectly through the Delhi market.

“Chinese ginger has been ruling the international markets for a long time. However, there have been cases of residual heavy metals being traced even in organic exports from China. This has opened up a window of opportunity for exports of organic ginger and needs to be cashed in”, said the Bank.

At the same time, the report points out that there is no formal value addition to the ginger produce of Sikkim. The State government has recently sanctioned a ginger processing unit with a capacity to process 7.5 MT/day and would be leased to private players for usage.

The processed products would include waxed ginger, ginger paste and oil and will help in better price realization and increased shelf life of the product, the report says adding such process will also encourage undertaking direct exports from Sikkim to international markets. The report mentions that ginger oil produced from fresh ginger in Sikkim has a high market value due to presence of various aroma chemicals.

The Bank also said a project to set up a ginger oleoresin plant in Sikkim is commercial viable to export ginger oil and oleoresins to Eastern countries like Japan, South Korea and Australia. It added that the project cost is estimated at Rs. 4.5 crore (excluding land cost) with the entire capital investment (excluding margin for working capital) being paid back within 5 years and 2 months of operation.