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Rediff.com  » Business » Indian garlic exports hit rock bottom

Indian garlic exports hit rock bottom

By Commodity Online
June 29, 2007 14:14 IST
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Garlic export from India has come to almost nil this year. Traders attribute this trend to increased domestic demand and higher production cost here.

According to traders, garlic exports have fallen from the target by almost 98% in the current fiscal.

Supply from China, the largest producer, is also back to the normal level after a shortage in 2005-06. Indian garlic prices have increased by almost 250% in the last one year making it unattractive to importers.

Indian exports have gradually declined over the years, while imports of garlic into the country have increased.

According to figures of Spices Board, India exported 135 tonnes of garlic for the first two months of the fiscal as against 7,478 tonnes in the corresponding period.

The unit realisation has risen to Rs 50.74 per kg from Rs 17.19. Bangladesh, one of the largest importers of Indian garlic in the past, has almost stopped importing garlic from India.

In April-May 2007, Bangladesh did not import garlic from India. In 2006-07, Bangladesh imported 5,827 tonnes of garlic as against 21,197 tonnes in 2005-06.

The local demand and supply has a great impact on exports. In fact, India is importing garlic from China since 1998 to the tune of 15,000-30,000 tonnes.

Indian garlic production is expensive due to low productivity, poor genotypes, and high cost of farming. India produces the small cloved varieties, with a high number of cloves, which the consumers here, prefer.

However, for export bigger clove garlic with lesser number of cloves is preferred. India is the third largest producer of garlic after China and South Korea. China tops in production with over 60% of the world output.

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