Garlic Prices Remain Robust

Garlic prices are currently strong in the market, with expectations of further increases. In Delhi, garlic from Madhya Pradesh, Rajasthan, Punjab, and Haryana ranges from $1,44 to $2,40 per kg, while Himachal garlic is priced between $1,80 and $3,00 per kg.

Currently, imports from Afghanistan, Iran, and China are influencing the market. Approximately 80 to 100 trucks of garlic have been illegally imported from China so far. However, the government is taking strict measures against these imports, including seizing trucks at the Nepal border.

High-quality garlic (number one) from China is priced at $2,04 to $2,16 per kg, while lower-quality garlic (number two) is sold at varying prices. The government may take further action against the import and sale of Chinese garlic in the coming days.

Limited Domestic Stock

Large-scale imports of garlic from China seem unlikely due to the issues with illegal imports and government actions. The new garlic season is still five months away, and only 40 to 45 percent of the current season's stock remains in the country. Good rainfall this year is expected to increase the demand for garlic seeds. However, it is difficult to estimate the exact stock levels with farmers and traders.

Garlic prices are likely to rise to an average of $3.60 per kg in the coming days. Even if prices dip slightly due to concerns over Chinese imports, a significant decline is unlikely. Mukesh Satasia, an expert, noted that around 20 percent of garlic stock in Saurashtra has spoiled due to extreme heat and adverse weather conditions.

Projected Price Trends

There is a shortage of high-quality garlic in the market, and the limited availability is driving prices higher. Good rainfall is expected to boost demand for garlic seeds, and prices may rise around Diwali. The shortage of good quality garlic will continue to support the market.

Although China is importing garlic, the illegal nature of these imports means no significant increase in volume is expected. The market is closely watching how Chinese garlic imports will impact local prices. Due to high seed prices, some farmers may reduce garlic sowing this year. However, farmers who regularly sow garlic are expected to continue for two to five weeks. While a large stock of garlic from Himachal and Kashmir was available, much of it has spoiled due to high temperatures. Garlic cannot survive in the extreme heat of Saurashtra, which has temperatures ranging from 40 to 44 degrees Celsius.

In conclusion, garlic prices are expected to remain strong due to limited domestic stock, high demand, and challenges with illegal imports from China. Seasonal conditions and market dynamics will continue to influence prices, with a potential rise around Diwali.