The retail prices of garlic have risen sharply in several cities because of lower output because of inadequate monsoon rains and robust exports.
Retail prices have touched Rs 500/kg in several cities, which is double of what prevailed a year ago. A month ago, retail prices were Rs 300-350/kg.
“Mandi prices have been currently ruling a record around Rs 35,000/quintal. Prices have been high since July because of a spike in exports and lower kharif harvest,” Avinash Rathi, president, Bhamasha mandi, Kota, Rajasthan, the hub of the country’s garlic trade, told FE.
However, traders say prices are likely to come down by the end of next month as the rabi harvest is set to arrive in the market by March 15.
Wholesale prices of garlic are currently ruling at around `350/kg at Azapur, Delhi mandi, one of the biggest vegetable markets in Asia.
“In anticipation of higher prices, farmers have sold their kharif harvest in the last few months. Thus supply is currently tight,” said Kama bhai, a trader from Rajkot, Gujarat.
Trade sources said garlic production in 2023-24 season is likely to be around 3.7 million tonne (MT) against 3.36 MT in the 2022-23 season. In 2021-22, it was estimated at 3.52 MT.
According to the Spices Board, exports of garlic in the first six months of this fiscal were up 110% on year at a record 56,823 tonne. Lower output in China resulted in record exports in FY23 at 57,346 tonne. China contributes around 75% of the global garlic output, at over 23 MT. India is the second biggest producer with an annual output of 3.3 MT.
Madhya Pradesh has a share of around 63% in total output of garlic in the country. Rajasthan (17%), Uttar Pradesh (7%), Gujarat (3%) and Punjab (3%) are other key producers.
Retail inflation in garlic has been rising steadily since May 2023, when prices rose 23% on year. In December, 2023 inflation was 198% on year.