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India: Garlic Prices Shoot up on Rise in Exports, Ban on Chinese Imports.


Date: 29-09-2010
Subject: India: Garlic Prices Shoot up on Rise in Exports, Ban on Chinese Imports
A housewife in Chennai who bought half a kg of garlic from her neighbourhood grocer a couple of days ago was shocked when it cost her Rs 100. The price had skyrocketed since she last bought it some three months ago. Then, she had paid around Rs 60 for half a kg, though that too was steeply higher than 18 months ago.

Garlic, which had hardly cost Rs 15 a kg until February 2009 at retail outlets, has now galloped over dozen times, thanks to rising export demand and a ban on Chinese garlic.

Garlic that was quoted at Rs 550 a quintal at the Agra terminal market in March 2009 is now quoted at Rs 7,000.

Earlier this year, the prices dropped from a high of Rs 5,400 in February to Rs 2,500 in May on higher arrivals. Since then, garlic has moved only one way — up. The rise has been sharp in the last couple of weeks and within this month, the increase has been 60 per cent.

“Imports from China have stopped after the Government imposed a ban two years ago due to a disease in the Chinese garlic,” said Mr R.P. Gupta, Director of the National Horticultural Research and Development Foundation. “This year, domestic production is good,” he said.

According to the Spices Board, exports in April-August have increased by 327 per cent to 13,250 tonnes valued at Rs 498 crore from 3,100 tonnes valued at Rs 63.22 crore in the same period last year.

Trade sources said China has turned a net importer this year as its garlic crop has been affected by hot weather first and floods thereafter.

No details are available on Indian production for this year, though estimates put it around 10 lakh tonnes. Garlic is sown during September-October and harvested during March.

But garlic farmers have not reaped the full benefit of the surge in prices. They had sold at around Rs 3,500/quintal in April.

Source : freshplaza.com

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