India overtakes China in garlic exports to SE Asia.

Kochi: The failure of Chinese garlic crop in 2009 has helped India export the commodity to Indonesia, Malaysia. the Philippines and Bangladesh. Traders said exports in 2009-10 was higher by almost 1300% over the previous fiscal.

According to Spices Board data for the first 11 months of 2009-10, garlic exports rose by 1257% in volume terms as compared to the same period of 2008-09. In value terms, exports went up by 724% to Rs 25.29 crore as against Rs 3.07 crore during April-February 2008-09.

“China is the market-maker in garlic. According to reports, the last Chinese crop was a washout compelling countries like Malaysia and Indonesia to procure from India,” Kanubhai Mehta, a prominent garlic trader from Mumbai told FE. China is the world’s largest producer of garlic with more than 60-65% of the total global market share while India is second or third with an output of eight lakh tonne.

The Spices Board estimates that garlic production in 2009-10 will touch 850,000 tonne. India is also a major consumer of garlic with both South and north Indian cuisines having garlic as an integral part of their menu.

India produces the small cloved varieties with a high number of cloves, which the domestic market consumes. However, for exports, bigger clove garlic with lesser number of cloves is preferred.

“The Indian crop, which arrived in the market in February, is definitely on the higher side or else the market price would have rallied higher by now,” Kanubhai Mehta said, adding that domestic demand is also robust.

According to the Spices Board, average price for garlic in the Mumbai market in 2009-10 was Rs 41.24 per kg, which has come down to Rs 39.50 at the start of the current fiscal.

Indian garlic is expensive due to low productivity, poor genotypes, and high cost of farming. In India, garlic is mainly cultivated during winter season. Demand for garlic is seen increasing rapidly because of rising sales of branded food pickles and curry products. It is also widely used for producing herbal products pastes and medicines. The local demand and supply have a great impact on exports. India has been importing 15,000-30,000 tonne of garlic from China since 1998.

Source : Financial Express