Garlic export jumps on smaller Chinese crop.

KOCHI: Garlic export from India is growing at a good pace this year thanks to a crop shortfall in China, the largest producer. Exports of the bulb at 10,975 tonne valued at Rs 41.3 crore for the April-July 2010 period have shown a 1,184% rise in quantity and a 1,957% jump in value.

Shailesh Shah, director of Mumbai-based Jabs International, a garlic exporter, said the Indian garlic is priced at around $2,000 per tonne now compared to a range of $,2600 to $3,200 per tonne from China.

“The good news is that the prices of Chinese garlic may not come down in the near future as traders are holding cargo expecting higher price,” he said. Malaysia, Indonesia, Philipines, Bangladesh are the major buyers in the international market.

Almost a major share of India’s garlic production of about 10 lakh tonne goes for domestic consumption. Exports totalled 10,750 tonne in 2009-10, which have been overtaken during the four-month period this fiscal.

Garlic, cultivated mostly in Madhya Pradesh, Uttar Pradesh and Himachal Pradesh, is harvested during March in India and in July in China. But this time Indian farmers have gone for an early harvest as the local prices are high due to higher consumption and lower productivity.

The local prices have increased to Rs 75 -100 per kg depending on the size from around Rs 50 per kg. But exporters say the decision of the commerce ministry to deny them the benefit of Vishesh Krishi Upaj Yojana will hit shipping in the coming months.

This incentive of 5% duty credit on FOB value of exports for each licensing year was available to all spices except pepper and chillies. “The exporters are at a disadvantage when it comes to forward contracts,” said Philip Kuruvila, chairman of All-India Spices Exporters Forum.

Source : economictimes.indiatimes.com