Garlic Prices Decline: Market Update
Madhya Pradesh Garlic Market: A Seasonal Shift
In Madhya Pradesh, garlic arrivals from various centers have reached 450,000 pieces. Prices are now fluctuating between USD 2,05 to 2,89 per kg (INR 17,000–24,000 per quintal). Recently, prices have dropped by USD 0,96 per kg (INR 8,000 per quintal).While the garlic market experienced a robust boom throughout the year, the season is coming to a close. Farmers still hold considerable stock, causing prices to decline as supply continues to rise. Estimates suggest 10–15% of this season's stock remains unsold in Madhya Pradesh.
Impact of Higher Garlic Sowing
Garlic cultivation has seen impressive growth this year in Madhya Pradesh. Dairy-quality garlic sowing has doubled, and native varieties have tripled in production compared to previous years.Although garlic sown early will dry out due to heat, new arrivals are expected to begin by January 15. By February, the market could see a significant influx of 5,000 bags of camel-quality garlic and 3,000 bags of local varieties.
Price details: Further Declines Expected
As of now, medium-quality garlic is trading at USD 2,17 per kg (INR 180), but prices could drop to USD 1,45–1,57 per kg (INR 120–130) in the coming months. High-quality garlic, currently priced at USD 2,05–2,17 per kg (INR 170–180), may also see a decline. If supply tightens, the fall might stabilize at USD 0,12–0,24 per kg (INR 10–20).Chinese Garlic Imports Losing Momentum
Imports from China, Afghanistan, and other regions are adding to the price pressure. Afghan garlic, for instance, sold at USD 3,86 per kg (INR 320) just two weeks ago but has since dropped to USD 3,01 per kg (INR 250) at Wagah Border. Additionally, Maun garlic smuggled through UP-Siliguri borders and Chinese garlic are flooding local markets, further reducing prices.Conclusion: What Should Traders Do?
With significant garlic stocks still unsold and prices under continued pressure, traders are advised to hold off on bulk purchases for now. Waiting for further market clarity, especially post-February when new arrivals stabilize, may prove beneficial.Click here to reach our trading platfrom CMBroker