Garlic Imports Expected to Lower Prices in India
Increased Imports Push Down Garlic Prices in India
Garlic prices in India have seen a sharp decline due to a surge in imports from China, Iran, and Egypt. The average price of garlic in Madhya Pradesh has fallen by $0,24 to $0,36 per kg, with current prices ranging between $1,92 and $3,36 per kg. Large-sized garlic is selling for around $2,64 to $2,76 per kg. Daily garlic arrivals in Madhya Pradesh remain high at 50,000 bags, and the expectation is that this steady supply will continue in the coming days. With 70% of the state’s garlic already sold, 30% of the stock still remains.Iranian and Egyptian Garlic Enters Indian Market
Garlic imports from China, which are often illegal, have had a significant impact on prices in India. Additionally, Delhi traders have started importing garlic from Iran and Egypt for the first time, with Iranian garlic now available in the Indian market. Despite a 100% import duty on garlic from these countries, the low cost—between $0,96 and $1,08 per kg has encouraged imports. This increase in foreign garlic imports is expected to reduce domestic garlic prices by another $0,12 to $0,24 per kg.Garlic Sowing Delayed Due to Rainfall
Demand for garlic seeds has risen as sowing starts, although persistent rains have delayed the process. Sowing is expected to pick up in the coming days. Currently, 30% of the garlic stock in Madhya Pradesh remains with farmers, who anticipate a good harvest in the near future. However, garlic exports are still low, particularly to Arab countries, where demand has slowed. Traders fear that unless Chinese garlic imports are curbed, local garlic prices will continue to fall.Rajkot's Garlic Market Hit by Price Decline
In Rajkot, garlic prices have plummeted by $0,09 to $0,12 per kg. Low-quality garlic is selling for $4,20 to $4,32 per kg, while premium quality garlic fetches up to $6,96 per kg. Daily garlic arrivals in Rajkot have slowed to 500 bags. Meanwhile, Chinese garlic continues to flood markets in Uttar Pradesh, Tamil Nadu, and southern states, significantly impacting local farmers and traders. Traders believe that if Chinese garlic imports were halted, garlic prices could rise by $1,20 to $2,40 per kg.With garlic imports from China, Iran, and Egypt increasing, India’s domestic garlic prices are expected to remain under pressure. Local farmers are facing tough competition, and the government may need to intervene to protect the local garlic market. The future of garlic prices will depend heavily on the upcoming sowing season and the extent of foreign garlic imports.