Significant Increase in Garlic Production

India is on track to see a significant rise in garlic production this year, with forecasts suggesting a 70% increase compared to 2024. The surge is primarily driven by Madhya Pradesh, where garlic cultivation has expanded by 50%. The state's improved farming practices and favorable weather conditions have contributed to an estimated 15-17% boost in overall production. This increase will elevate the total crop yield to 170% of last year's levels. Currently, 1.75 to 2 million boxes of garlic are arriving daily in Madhya Pradesh, and this volume is expected to grow further as the Rajasthan harvest kicks off on March 15.

Varied Garlic Prices in The Market

Garlic prices in Madhya Pradesh vary widely. Desi quality garlic is trading between USD 0,30 to 0,72 per kg, while Ooty quality garlic ranges from USD 0,42 to 0,90 per kg. These prices reflect the quality and freshness of the produce. Although a minor price increase could occur as old stocks run out, a major surge in prices seems unlikely. Export demand, especially from Bangladesh and Nepal, remains limited, which helps maintain a stable market environment.

Higher Garlic Production Affects the Market

The anticipated increase in garlic production could lead to a steady supply in the market, reducing the risk of price volatility. The arrival of fresh crops from Rajasthan and Gujarat in March will further support market stability. Factory owners are gearing up to purchase dehydrated garlic at competitive rates, which might create short-term buying opportunities. However, the market is not expected to experience any drastic changes in supply and demand dynamics.

Opportunities and Challenges for Garlic Traders

For traders, the key opportunity lies in managing inventory effectively. As new crops flood the market, those with cold storage facilities and logistical capabilities can benefit by holding stocks until prices become more favorable. However, traders should remain cautious of fluctuating export demands and potential shifts in buyer preferences, particularly in international markets. Building strong relationships with buyers in Bangladesh and Nepal could also help stabilize sales.

Conclusion: A Balanced and Predictable Garlic Market

The garlic market appears poised for stability in 2025, with a significant boost in production contributing to balanced supply and demand. While prices may see moderate fluctuations, the market is likely to remain predictable for buyers and sellers. Those in the garlic trade should focus on maintaining quality, managing supply chains efficiently, and exploring export opportunities to make the most of this productive season.

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