Fall In Domestic Prices May Boost Garlic Exports.

Garlic exports are likely to increase further as prices come down in the domestic market, traders said.

From being a net importer of garlic, India has turned into a big supplier of garlic in the global market due to a shortfall in the Chinese crop and good domestic production, traders said. Apart from its traditional market of Bangladesh, Indian garlic’s are now exported to Pakistan, Thailand and Malaysia.

Exports for the first eleven months of the current financial year are already higher by 66% in volume and 138% in value term. Exports would have been much higher but the sharp rise in domestic prices has impacted the figure during the last quarter of 2010.

Unseasonal rains in major garlic producing regions disrupted production, thus reducing the supply of fresh crop and pushing prices in the domestic market, traders said.

“Retail price in the domestic market even touched Rs 300 per kg in December 2010. Prices are down by Rs 40-50 per kg and exports are back,” Kanubhai Mehta, a Mumbai-based trader told FE. “It is reported that the Chinese crop for 2011 is also lower and the good harvest in India would result in higher exports,” Kanubhai said.

Spices Board estimates country’s garlic production to be around 10,00,000 tonne per annum. Indian garlic production is expensive due to low productivity, poor genotypes, and high cost of farming.

In India garlic is mainly cultivated during winter season and reports indicate a rise in acreage. Demand for garlic is seen increasing rapidly with the higher sales of branded food pickles and curry products. It is also widely used for producing herbal products pastes and medicines.

Source : financialexpress.com