High Production Levels Expected Across Madhya Pradesh and Rajasthan

This year, India is set to witness a bumper garlic crop, with production expected to be two to two-and-a-half times higher than last year. Daily arrivals in Madhya Pradesh have exceeded 100,000 bags, and prices have already dropped to USD 0,48 - 1,08 per kg. Farmers have been holding onto their stocks, anticipating a better selling price, but as arrivals increase, sales are likely to pick up in the coming weeks.

Low Demand Weighs on Garlic Prices

The demand for garlic remains sluggish, as traders and wholesalers had already stocked up during the price surge last year. When garlic prices soared to USD 2,40 per kg, traders stocked up heavily, expecting further gains. However, with a sharp correction in prices, many are now unwilling to sell at a loss. Currently, garlic prices are USD 1,38 - 1,44 per kg, but further reductions of USD 0,24 - 0,36 per kg are expected as fresh arrivals hit the market.

Dehydrated Garlic Stocks Remain High

The market for dehydrated garlic has also taken a hit due to oversupply. An estimated 50,000 tonnes of dehydrated garlic remain in storage, sufficient to meet demand for the next two years. As a result, garlic meant for dehydration is experiencing steep price declines. Factory-quality garlic from Madhya Pradesh could be available for as low as USD 0,24 - 0,30 per kg in the coming months.

Export Market Fails to Support Prices

Despite India exporting 7 million tonnes of garlic in 2010, exports have been lackluster in recent years. Only a surge in exports could help stabilize prices, but unless foreign demand increases, garlic prices are likely to remain weak.

Conclusion: Garlic Prices Set to Decline Further

With record-high production levels and weak demand, garlic prices could drop even further in the coming weeks. Farmers and traders may have to brace for continued price declines, unless export demand picks up. The garlic market will likely remain under pressure unless a strong export push or unforeseen market shift occurs.





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