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Manthan1709

Dec 24, 2024

India: Garlic Prices Set for an Uptick After Recent Market Jitters

India: Garlic Prices Set for an Uptick After Recent Market Jitters

Garlic Prices: A Recent Spike That’s Got Everyone Talking

Garlic prices in India have taken a noticeable jump recently, moving from $0,36 to $0,48 per kg. This sharp rise has left traders and buyers on edge, wondering if this is just the beginning. Market analyst Sanjay Gupta suggests prices might climb even further, possibly reaching $1,20 per kg. “Once the panic fades, we could see prices shooting up again,” he notes. The big question is whether farmers and traders will act fast or hold on, betting on higher returns.

Tracking the Price Surge

On December 20, garlic prices ranged between $1,68 and $3,12 per kg, depending on quality. But just a week later, prices jumped by $0,36 to $0,48 per kg, pushing the range to $1,68 to $3,12 per kg, up from the previous $1,68 to $2,88. With rain expected from December 27 to January 5, prices could inch higher as supply chains face disruption. However, it’s not just the weather stirring things up—it’s the uncertain market sentiment that’s keeping everyone guessing.

Regional Insights: Rajasthan and Madhya Pradesh

In Rajasthan, garlic stocks are dwindling, with about 10,000 bags in the market. Madhya Pradesh, which typically handles 40,000 to 50,000 bags daily, has seen sales drop to nearly half that. Farmers in both states are holding onto just 5–7% of their produce, reflecting unusually low reserves. "It’s not just about supply," explains one trader in Rajasthan. "The fear of further price drops has made sellers nervous, pushing them to offload stocks earlier than usual."

The Import Equation: Is Chinese Garlic the Answer?

Despite domestic turbulence, the cost of importing garlic from China remains steady at $1,20 per kg. Interestingly, this price is now on par with high-quality Indian garlic. Some traders believe this alignment is more about market panic than actual supply-demand dynamics. "We’re seeing a bit of irrational fear driving these price matches," says Gupta. Whether or not this trend holds will depend on how quickly the domestic market settles.

Smart Selling Tips for Farmers and Stockists

Sanjay Gupta offers a piece of simple advice: don’t rush to sell. “If you panic-sell now, you’ll lose out later. Garlic prices often stabilize after an initial spike,” he explains. Farmers and stockists should focus on pacing their sales to avoid flooding the market. This strategy could help them make the most of the current conditions.





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