Export Kicks Up Garlic Rates by Rs 230 a Kilo in Nine Months.

It is not only the onion which is bringing tears to consumers’ eyes. Another bulb crop, garlic, has gone out of common man’s reach. Garlic prices have soared by Rs 200 per kg since February this year, when it cost Rs 50 a kg, and touched an all-time high of Rs 250-280 per kg in retail market.

On Thursday, wholesale prices of garlic were Rs 130-190 per kg (retail Rs 180-200) in Maharashtra APMC, Rs 110-170 (retail Rs 250-280) in Delhi and Rs 100-140 (retail Rs 200-220) in Madhya Pradesh.

But the garlic case is different from that of onion. It is not a demand and supply situation; prices have soared largely due to sheer negligence of the Government. While the production is slightly low (see table), garlic export has increased by 1,315 per cent.

Ramnik, a Gujarat-based producer and exporter of garlic, reasoned, “Deficient monsoon last year led to the shortage this year. In addition, the excessive rain this year harmed the stored garlic and forced farmers to claim higher prices.”

Garlic is sown in only one season, October to February. Garlic production is highest in Gujarat and Madhya Pradesh, followed by hill States and Maharashtra.

Another producer, Natwar from Madhya Pradesh, added, “The seed last year was very costly, at Rs 75 per kg, while it was 2 a kilo in 2008. So, only big framers sowed garlic last year, leading to less production this year.”

Going by the estimates, garlic production is likely to be less by 9,116 tonne. But the price rise is disproportionate (see table). Traders estimate the garlic production to be 10, 00,000 tonne this year.

The export has led to the domestic supply crunch, traders said. Delhi Garlic Traders’ Association vice-president Raju said, “The demand of Indian garlic in the neigbouring countries has gone up due to two reasons. One, production of the big-sized garlic – which is more in demand — is increasing in India. Earlier, only China had that variety. Two, in the last two years, China’s production has gone down.” In addition, India banned imports from China two years ago following detection of fungus in Chinese garlic.

If the Government doesn’t control export, the situation is likely to worsen next year as there would be greater demand of Indian garlic. China’s garlic production would be very less in 2011 due to heavy damage caused by floods this year.

Producers said the maximum export took place from February to July when domestic prices were less attractive. While international prices were at Rs 90 a kilo, average wholesale domestic price was Rs 40. India majorly exports to Bangladesh, Malaysia, Pakistan, Sri Lanka and the Gulf countries.

The prices are likely to come down only after February when the new crop arrives, traders said.

Source : dailypioneer.com