India's garlic exports to hit record in FY24: Here's why
What's the story
India is experiencing a boom in garlic exports due to a global shortage and decreased supply from China.
Spices Board has revealed that garlic exports from April to September 2023-24 have increased by 110% in quantity and 129% in value, heading for a new high in FY24 compared to the same period last year.
Vijay Hotwani, Managing Director of Varchasva Agro, predicts a crop of 3.6 to 3.75 million tons next season, up from 3.3 million tons last year.
Details
Factors behind the surge in garlic exports
The rise in Indian garlic exports is a result of China's production shortfall, which accounts for 75% of the global garlic supply.
In FY23, India exported a record-breaking 57,346 tons of garlic, valued at Rs. 246 crore.
Wholesale prices have reached around Rs. 240 per kg, pushing retail prices to Rs. 260-265 per kg. This price increase is due to dwindling old stock and growing export demand.
Scenario
New markets and forms of garlic exports
Countries like Brazil and other Latin American nations, which are not traditional buyers of Indian garlic, are now turning to India for supply.
About 70% of India's garlic exports are in fresh form, while the remaining 30% consists of flakes and granules that are gaining popularity in Western countries.
Murtuza Badami, MD of Murtuza Foods Pvt. Ltd., states that Indian garlic flake prices have reached Rs. 105 per kg because of increased demand and China's lack of buffer stock.
Insights
Future outlook and challenges
Although sowing for the upcoming season has increased by 30%, higher production will depend on favorable weather conditions.
Current price trends will likely persist until the harvest in February-March, after which prices may drop and potentially boost exports.
Indian garlic prices could also fall to $900 (around Rs. 75,000) per ton next year, undercutting China's prices.
Olam Group's market report from September indicates that China's garlic planting for 2023 was 15-20% lower than the previous year.