Mumbai: With the feared price-crash on account of heavy imports from Taiwan failing to make the expected impact, garlic prices are seen stabilising in the near future.Currently the prices for Indian varieties are hovering around Rs 20-36 per kg while the Taiwanese variety is quoted at around Rs 46-47.
According to traders at the Navi Mumbai wholesale market, arrivals of garlic from producing centres like Gujarat and Madhya Pradesh are satisfactory.
Daily arrivals from both the states are around 7-8 lorries, sufficient to meet the domestic demand.Prices are likely to stagnate at the present levels until the new arrivals in February and March after which the arrivals are expected to reduce. Earlier, a shortage in garlic due to poor crop in Uttar Pradesh, a major producer, had led to a surge in prices. Presently, arrivals from the state are virtually nil.
Besides, strong export queries from Bangladesh have also aided the upward movement. According to Arun Bhinde, president of Bombay CommoditiesBrokers' Association at Navi Mumbai, speculators have spread rumours of 25 per cent losses in the crop and in all likelihood may turn out to be false. There was no question of severe damage to the garlic crop in the cyclone hit areas of Gujarat as the crop was already taken in the month of March. There were reports that Jamnagar, the major garlic-producing centre in the state has lost about 15 per cent of its crop in the recent cyclone. Prices of Jamnagar garlic rose to Rs 1,400 per quintal, double of what it was prior to cyclone. Extra medium variety has also witnessed a rise of Rs 50 per quintal at Rs 700.
Arrivals of garlic from Madhya Pradesh were also limited during that period. The prices of MP garlic ranged from Rs 11-12 to Rs 23-24 per kg, substantially higher than the earlier levels of Rs 7-8 to Rs 16-17 per kg. Ladwa variety of garlic had shot up to Rs 1,400 per quintal which was quoted at Rs 900 earlier.
Garlic exports were also likely to be hit as the lower quality garlic produced in Gujaratand Saurashtra was damaged by the cyclone. Garlic exports during the first seven months of the current financial year totalled 2,650 tonnes valued at Rs 254.75 lakh. This was substantially lesser than the previous year's 2,717 tonnes at Rs 603.40 lakh. Garlic exports during the financial year 1997-98 valued at Rs 7.60 crore had touched 4,000 tonnes. This was lower than the previous years' in terms of both quantity and value. Export of garlic during the year 1996-97 was 4,889 tonnes and had fetched Rs 7.98 crore.
India will face stiff competition from Taiwan and China as the quality of their produce is far superior. Moreover, their garlic is better packaged and also enjoys an edge in pricing.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.