Garlic Prices Set for a Sharp Rise

Garlic prices in India are set to reach historic highs by December. Madhya Pradesh, one of India’s key garlic-producing regions, were priced at $1,20 to $2,40/kg before Diwali. Now, experts predict a significant increase, with prices expected to hit $3,00 to $5,12/kg by December 10. The rise applies to regular garlic quality, while premium garlic is anticipated to be even pricier. According to industry sources, this increase stems from a limited supply and rising seasonal demand. It is set to create a sharp uptick in garlic prices across the country.

Garlic Prices: Low Stock and Seasonal Demand

Madhya Pradesh’s garlic markets, typically seeing daily transactions of 75,000 to 100,000 bags before Diwali, are projected to experience a 40% increase in trade volume as they reopen after the New Year holidays. However, with only 3.5 to 4 million bags currently in stock nationwide, the available garlic supply remains critically low. This shortage of garlic reserves, combined with increased market activity, is expected to drive prices higher through the end of the year.

Rising Demand As Winter Arrives

The demand for garlic typically surges during winter and wedding season, with daily national consumption estimated at 95,000 units. As the weather cools, garlic consumption also increases for culinary and medicinal purposes, creating added pressure on limited stock. Following Diwali, the market expects consumption to rise by 1.5 times the usual rate, intensifying the price escalation as demand outpaces supply.

Historical Price Projections

Farmers and traders report that only 30% of garlic stock was stored initially, and 60% of that stock has already been sent to market over the last six weeks. Storage centers and warehouses are now half-empty, with minimal stockpiling among traders. Limited inventory and steady demand suggest garlic prices will likely reach unprecedented highs by the end of 2024, setting a historical record.

Conclusion: Unprecedented Garlic Prices Expected in 2024

With limited stock and steady demand, garlic prices in India are expected to climb to historical levels by December. If current conditions continue, prices will reflect a record-setting year for garlic, impacting consumer spending and supply chain strategies for 2024.





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