India will continue to export record amounts of garlic in FY24

 India will continue to export record amounts of garlic in FY24

India is in a strong position because of the worldwide scarcity of the spice as well as decreased supply from China, the world's biggest producer of garlic.

Roughly 70% of garlic exported is produced in its fresh state.

India's garlic exports are expected to reach all-time highs in FY2014, after record export quantities the year before.

India is exporting more garlic than it is importing because China, the world's top producer, isn't producing enough of the spice.

Of the world's total garlic production—more than 23 million tonnes—China produces 75% of it. With a far smaller output of 3.3 million tons, India comes in second.

India exported record amounts of garlic in FY23 as a result of China's declining garlic output. However, exports are doing much better this year and are probably going to reach a record high. The Spices Board's most recent statistics shows that during the April–September 2023–24 period, exports of 56,823 tonnes, valued at Rs 277 crore, increased by 110% in quantity and 199% in value over the previous equivalent period. Year.

Garlic exports hit a record high of 57,346 tonnes, valued at Rs 246 crore, in FY23. While the volume has gotten close to the yearly export volume from the previous year during the last six months, the value has already exceeded that level.

Value increased by 32% year over year (YoY) and volume increased by 159% in FY2013. For the first time, India's garlic exports surpassed the 50,000 tonne threshold. 47,000 tons was the previous peak in 2017–18.

In the medium run, India can expand at 7% if the fall in exports is reversed: Srivastava of EY In the medium run, India can expand at 7% if the fall in exports is reversed: Srivastava of EY

It's interesting to note that this occurred at the same time as the year-over-year reduction in overall spice export volumes was seen, with export quantities of staples like chilli, cumin, spice oleoresin, and mint products declining. Furthermore, Indian garlic was selling for a lot of money both domestically and abroad at this time. Exporters claim that although Chinese garlic is presently selling for $1,350 per tonne, Indian garlic is currently selling for almost $1,800 internationally.

Garlic costs around Rs 240 per kg at wholesale, which translates to Rs 260–265 per kg at retail in the home market. "In the past few weeks, the prices have risen to this point," wholesale garlic seller Sujesh said. Consequently, there has been a decrease in shop offtake. It's the most expensive price ever. In Kerala, rates had risen to Rs 180 per kilogram two years before.

Prices for garlic have gone up due to depleting supply and rising demand from exports. Even if a bigger harvest is anticipated the next year, rising demand can keep prices high. "We anticipate a harvest of 3.6 to 3.75 million tonnes, compared to 3.3 million tonnes in the previous season," said Vijay Hotwani, managing director of Swarvima Agro, an export company situated in Madhya Pradesh.

The amount sown for the next season has gone up by 30%. But he said that increased output would depend on the weather. With almost 65% of the state's total production, Madhya Pradesh is the biggest producer of garlic. Gujarat, Uttar Pradesh, and Rajasthan are further important producers.

According to Hotwani, the present pricing trend will hold until the harvest in February or March. Prices may drop after that, which would increase exports. Next year, our pricing may drop below $900 per tonne, which might be less than what Chinese garlic is sold for," he said.

Many nations who do not typically purchase Indian garlic are now doing so due to the scarcity around the world. Most Asian nations, including Bangladesh, Malaysia, Thailand, Vietnam, and Nepal, like Indian garlic. However, last year, Brazil and other Latin American nations boosted their imports from India. Hotwani said, "They have shifted their focus to India from China, where they used to buy."

The majority of garlic exported is exported as flakes and granules, of which there is a growing demand, particularly in Western nations, for the remaining 70% of the commodity, which is produced fresh.

Chinese garlic is often preferred throughout the Americas, Europe, and West Asia since it is less pungent, bigger in size, and has more color. However, a few of these nations—particularly those in West Asia, the US, and Russia—are purchasing more Indian garlic cloves. "The price of Indian garlic flake has now reached Rs 105 per kg, after previously drifting below Rs 100 per kg. But since China doesn't have any buffer storage, demand has soared. There, output must be restricted to satisfy demand. Enough to meet the needs of Murtuza Badami, MD of Murtuza Foods Pvt. Ltd.

According to a September market analysis from the renowned international agri-products business Olam Group, China planted 15-20 percent less garlic for the 2023 harvest than it did the year before because of the COVID-19 pandemic and the delayed arrival of fresh garlic. Wheat demand, low prices, and high support prices.