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Monday, February 22, 1999

Heavy arrivals push down garlic prices 

OUR BUREAU  
MUMBAI: Heavy arrivals of damp garlic has pushed down prices of the commodity drastically during last week at the Agriculture Produce Market Commission market yard of Navi Mumbai.

The downward trend is likely to sustain for another month or so, the traders informed. The prices have witnessed a fall of around Rs 15-20 per kilogram in almost all the varieties in a span of five days while the crash is severe if compared to the prices prevailing in the first week of February.

The inferior variety is quoted at Rs 10 per kilogram, the best variety was quoted at Rs 22-23 per kilogram against Rs 40-42 and Rs 50-55 a fortnight earlier. The new garlic crop has not dried up sufficiently, thus reducing its shelf life to less than 48 hours. This has forced the traders to offload daily arrivals on daily basis as the bulk spoils and darkens. The dried crop which normally starts arriving after Holi, is expected to be delayed as the climatic conditions are not picking up sufficient warmth at the producing centres.

Thecrop of garlic in the country in the current year is likely to maintain previous year's level at 50 lakh kg. According to Arun Bhinde, president, Bombay Commodities Brokers' Association, garlic export demand is also likely to pick up in early April which might arrest the decline in prices.

Earlier during December steady decline in prices of garlic had been arrested and had stabilised as the psychological fear of prices crashing down due to heavy imports from Taiwan had failed to make the expected impact.The prices for Indian varieties at that point of time had hovered around Rs 20-36 per kilogram while the Taiwanese variety was quoted around 46-47. According to traders at the Navi Mumbai wholesale market the arrivals of garlic from producing centres like Gujarat and Madhya Pradesh are satisfactory.

The daily arrivals from both the states are around 7-8 lorries, sufficient to meet domestic demand.

Earlier shortage in garlic due to poor crop in Uttar Pradesh, a major producer, had led to a surge inprices. The arrivals from the state had come to a virtual standstill. Besides, strong export queries from Bangladesh had also aided the upward movement. Garlic exports during the financial year 1997-98 had been to the tune of 4,000 tonnes valued at Rs 7.60 crore which is lower than the previous 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 has to face stiff competition from Taiwan and China as their quality is far superior. Moreover their garlic is better packaged and also has an edge in pricing. Garlic is mainly exported to Malaysia, Singapore and Sri Lanka.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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