News

Anala Rajkot

Jul 8, 2024

Garlic Prices Expected to Double: Supply Shortages and Increased Demand Drive Price Surge

Garlic Prices Expected to Double: Supply Shortages and Increased Demand Drive Price Surge

Daily Incomes and Quality Issues

Currently, garlic prices remain stable, with daily arrivals in Rajasthan ranging from 15,000 to 20,000 sacks and prices between $1,20 and $2,40 per kg. Stockholders contribute about 25% of this income. Over 50% of this season's crop in Rajasthan has already reached the market. However, excessive heat has increased spoilage rates, leading to more sales of smelly garlic. Similarly, Madhya Pradesh sees daily arrivals exceeding 50,000 sacks.

Impact of Weather and Supply Shortages

Experts predict that post-transplantation prices will double by November, reaching $3,60 to $4,80 per kg. This surge is due to anticipated good rains, decreased production in Gujarat, Rajasthan, and Madhya Pradesh, and increased spoilage rates. Consequently, the demand for high-quality garlic remains strong, while the overall supply is limited.

Impact of Chinese Imports With Market Adjustments

Export demand for garlic remains low. Nevertheless, reports of illegal imports from China are impacting prices. Although the quantity of Chinese garlic imports is minimal, its presence has prevented a significant price rise. Moreover, traders in Gujarat have increased stocks of garlic from Himachal and Kashmir. Currently, prices for this garlic range from $2,40 to $2,46 per kg.

In summary, the garlic market is expected to remain stable in the short term but is likely to experience a significant price increase by November due to reduced supply and increased demand. Therefore, traders and farmers should prepare for potential price fluctuations and market adjustments.
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