Impact of Imports on Domestic Market

India’s garlic market has been significantly affected by an unexpected surge in imports from China. These imports have altered the supply-demand dynamics, keeping prices subdued. Current garlic prices in India range between USD 0,84–1,80 per kg, with the average price at USD 1,44–1,92 per kg.

Chinese garlic, priced at USD 1,80–2,40 per kg, has intensified competition, while local garlic prices are slightly lower at USD 0,96–2,64 per kg. With the daily demand for garlic in the country standing at 50,000–60,000 bags, supply from old and new crops is meeting market needs, leading to price stability.

Farmers’ Concerns and Crop Condition

Farmers in Madhya Pradesh are reluctant to harvest their garlic crops early due to lower price projections. Early harvesting also reduces yield, prompting many farmers to preserve their crops until February by spraying water and medicines.

The garlic crop in Madhya Pradesh is in good condition, with minimal damage reported. Around 10–20% of the crop experienced initial losses, but the overall harvest is expected to be 1.5 times larger than the previous season.

Market Projections After February 15

Market stability is anticipated until mid-February, but significant changes are likely afterward. Beginning February 15, 50,000–60,000 bags of new garlic are expected to arrive daily in Madhya Pradesh. This influx is projected to push prices down to USD 0,30–1,50 per kg, the lowest levels seen in recent times.

Lower domestic prices may also reduce the import of Chinese garlic, which has already saturated the market. Farmers and traders remain cautious about managing this expected oversupply.

Conclusion: Price Drop Expected

The garlic market in Madhya Pradesh faces a challengs, with significant price drops expected after February 15 due to increased arrivals. Farmers are navigating tough conditions with low prices and rising competition from imports. However, the reduction in imports and adjustments in supply may eventually stabilize the market in the months ahead.





Click here to reach our trading platfrom CMBroker