Garlic Prices Anticipated To Increase In The Near Future
Garlic prices are expected to rise significantly in the coming months, with projections indicating an increase between mid-July and mid-August. In Madhya Pradesh, the prices of seed varieties like Amleta, Mahadevi, Riyavan, G-2, and Malkapuri are expected to increase. Traders predict the price hike will occur between 15 July and 15 August.
In conclusion, the garlic market is poised for significant price increases in the coming months. Exporters should be prepared for these fluctuations and consider strategic purchasing at current price levels. The combination of regional supply pressures, weather impacts, and changing market demands will play crucial roles in shaping market trends. Monitoring these factors closely will be essential for making informed decisions in this volatile market.
Impact of Weather Conditions
Rajasthan has experienced extreme heat this year, with temperatures exceeding 45 degrees Celsius, leading to significant damage to the garlic crop. This unprecedented heat wave has resulted in farmers hastily selling their stock. Approximately 30% of the season’s garlic from Madhya Pradesh has already reached the market, with 70% still pending. Out of the remaining garlic, 30% will be used for seeds, and the rest, including various quality levels, will enter the market.Market Demand and Crop Quality
Farmers have benefited from favourable garlic prices over the past two years. If the region experiences good rainfall, there is likely to be an increased demand for seeds, leading to higher sowing in the new season. Himachal Pradesh garlic, known for its high quality and longer shelf life, has seen a significant price increase. Consequently, both farmers and stockists are keen to acquire this variety.Supply and Demand Dynamics
The garlic crop in Saurashtra has increased by 40% compared to last year, yet only 15% of the total season’s crop has been sold so far. Local demand is currently low. But as the summer heat subsides and the demand for seeds grows, market conditions are likely to change. Traders are advised to be cautious, as local supply pressures and potential market corrections could impact prices.In conclusion, the garlic market is poised for significant price increases in the coming months. Exporters should be prepared for these fluctuations and consider strategic purchasing at current price levels. The combination of regional supply pressures, weather impacts, and changing market demands will play crucial roles in shaping market trends. Monitoring these factors closely will be essential for making informed decisions in this volatile market.
