Uncompetitive prices in the international market and ample availability of Chinese supply at lower prices has dampened export demand for Indian origin garlic.
A decline in garlic production in the domestic market, following reduced acreage by farmers due to poor remuneration in the last season, has led to a surge in rates in both local and international markets.
Indian origin garlic is offered at $1,500 a tonne -$ 2,500 a tonne (FOB) of various sizes and qualities in the international market as against $1,100-$1,500 a tonne quoted by China, the top exporter of garlic in the world, said garlic exporters from Mandsaur and Neemuch, leading garlic producing and exporting center contributing more than 80 per cent in the total national export basket.
Sourabh Badjatya, a garlic exporter from Mandsaur said, “Export demand for Indian garlic has almost diminished due to higher prices. A sharp decline in garlic production in the country led to a spike in prices and this dampened the exports.”
Indonesia, Thailand, Malaysia and Bangladesh are the major importer of Indian origin of garlic that has high pungency preferred mostly in South East Asian countries.
The harvesting of new season garlic starts from January and arrivals peak during March-April when bulk quality is exported from the country.
A garlic trader Shailesh Hotwani said, “High prices have put a break on exports of garlic but exports were good in the first two quarters of the fiscal year because prices were lower and Chinese supply had not started. So far, exports have already surpassed last year’s level. Garlic prices are expected to remain strong in the short term until the new season supplies starts.”
Exporters said more than 700 containers of garlic were exported in the first two quarters of the current financial year. Last year around 300 containers were exported from India, estimated exporters and traders.
