 "Garlic")
Garlic prices have jumped by 40% in the last three months on reports of lower production and robust seasonal demand.
Data compiled by the government-owned National Horticulture Board (NHB) showed garlic price shooting up to Rs 82 a kg in the wholesale markets here on Thursday, as compared to Rs 59 a kg in September.
Retail market was also quick to respond to the rise in the wholesale markets, even as supply remained a core concern for both. In retail markets here, garlic was quoted at Rs 147 a kg on Thursday as compared to Rs 100 a kg in September.
The sudden jump has worried many customers as retail demand increases during the winter season for its use as a vegetable additive as well as direct consumption.
“The major reason for increase in garlic prices was the crop damage by unseasonal rainfalls during the crop maturing period last year. As a consequence, the overall output is estimated to decline this year,” said RP Gupta, Director, National Horticulture Research and Development Foundation (NHRDF).
Traders estimate 10-15% garlic crop damage this year due to unseasonal rainfalls and hailstorms on a regular basis in major producing centres. But, NHB has not yet factored in the crop damage.
The third advanced estimates from the Ministry of Agriculture forecasts India’s garlic production at 1.29 million tonnes in the crop year (2014-15) as compared to 1.25 million tonnes in the previous year.
Higher production was estimated, based on increased area under acreage this year. Data from NHB revealed a total sowing area of 0.24 million ha in 2014-15 as compared to 0.23 million ha during last year.
“Prices are likely to cool down once the arrival of new season’s crop begins in full swing probably in the next couple of weeks,” said Gupta.
The prices of garlic, according to private wholesale traders, have soared due to low arrivals at mandis. In the benchmark Bhopal mandi, arrivals have dried up.
“Bad weather conditions, this year, have affected the crop this season. Also, farmers have increased the sowing area this year and used a large portion of the crop as seed. This has affected arrival in mandis as a result prices have gone up. The prices may go as high as Rs 200 a kg and will remain firm till arrival of new crop,” said Mohammad Anees, partner of Azad & Company, one of Bhopal’s largest garlic traders.
“Export demand has suddenly emerged in the last few weeks, which supported firmness in garlic prices,” said one of the largest exporters in Agriculture Produce Markets Committee (APMC), Vashi.
Data collated by the Ministry of Commerce showed India’s total garlic exports jumped by over 40% to 5,797.55 tonnes in the period between April-September this year as against 4,117 tonnes in the same period last year. Normally, exports in October-March period jump sharply as seen in the last financial year. During the second half of the last financial year, garlic exports from India jumped by an emphatic 64 % to 6,753 tonnes.
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| Area and production of garlic | ||
| Crop year | Area (‘000 ha) | Production (‘000 tonnes) |
| 2009-10 | 164.9 | 834 |
| 2010-11 | 201 | 1058 |
| 2011-12 | 242 | 1228 |
| 2012-13 | 248 | 1259 |
| 2013-14 | 231 | 1252 |
| 2014-15* | 244 | 1292 |
| Source : National Horticulture Board, * Third Advanced Estimates | ||
