FY24 is expected to be another year of record garlic exports from India.

Garlic exports from India are on track to set a new high in FY24, after record export volumes the previous year.

A worldwide scarcity of the spice, exacerbated by decreased supply from China, the world’s biggest exporter, has increased garlic export quantities from India.

China accounts for 75% of world garlic production, with approximately 23 million tons produced. India comes in second, although with a significantly smaller output of 3.3 million tons.

Garlic output shortages in China resulted in record garlic exports from India in FY23. However, exports are doing much better this year and are on track to reach a record high. According to the most recent Spices Board statistics, exports were 110 percent more in terms of quantity and 129 percent higher in terms of value for the period April-September 2023-24, at 56,823 tonnes valued at Rs 277 crore.

Garlic exports hit a record high of 57,346 tonnes valued at Rs 246 crore in FY23. While the quantity has approached last year’s yearly export volume in the previous six months, the value has already surpassed it.

Year on year (YoY), there was a 159 percent increase in quantity and a 32 percent increase in value in FY23. This was the first time that India’s garlic exports exceeded 50,000 tonnes. In 2017-18, the previous high was 47,000 tons.

Surprisingly, this occurred during a year in which total spice export volumes declined by 8%, with heavyweights such as chili, cumin, spice oleoresins, and mint products down in export numbers. This was also a time when Indian garlic was commanding high local and international prices. According to exporters, international prices for Indian garlic are now approximately $1,800 per tonne, compared to $1,350 per tonne for Chinese garlic.

Wholesale garlic prices are hovering around Rs 240 per kg, driving retail prices in the domestic market to the range of Rs 260-265 per kg.

“Prices reached this level in the last couple of weeks. As a result, offtake by shops has declined. This is the highest price so far. Prices had reached Rs 180 per kg two years ago,’’ said Sujesh, a wholesale garlic merchant in Kerala.

Garlic prices have risen as supply is depleted and export demand is increasing. Though the fresh harvest for the next year is likely to be larger, increased demand may keep prices high.

“We are expecting a crop of 3.6 to 3.75 million tonnes in place of 3.3 million tonnes in the last season,’’ said Vijay Hotwani, Managing Director of Varchasva Agro, an exporting firm based in Madhya Pradesh.

Sowing for the next season has risen by 30%. However, he said that increased output would be dependent on weather conditions. Madhya Pradesh is the major producer of garlic, accounting for around 65 percent of total production. Rajasthan, Uttar Pradesh, and Gujarat are the other significant producers.

Hotwani believes that present pricing patterns will last till the harvest in February-March.

“After that, prices could slacken, which may boost exports. Our prices could fall to $900 per tonne next year, which could be below the garlic price in China,’’ he pointed out.

Because of the worldwide scarcity, some nations that are not usual purchasers of Indian garlic have turned to the country for the spice. Asian nations such as Bangladesh, Malaysia, Thailand, Vietnam, and Nepal favor Indian garlic. However, Latin American nations such as Brazil increased their imports from India last year.

“They used to buy from China but have now shifted their focus to India,’’ Hotwani said.

Almost 70% of garlic export production is fresh, with the remainder largely consisting of flakes and granules, which have seen increased demand in recent years, particularly from Western nations.

Chinese garlic is often preferred in the United States, Europe, and West Asia because it is larger, more colorful, and less pungent. However, several of these nations, notably those in West Asia, the United States, and Russia, are increasing their purchases of Indian garlic flakes.

“Indian garlic flake prices, which were hovering below Rs 100 per kg, have touched Rs 105 per kg now. However, demand has increased as there is no buffer stock in China. Production is just enough to meet the demand there,’’ said Murtuza Badami, MD, Murtuza Foods Pvt. Ltd.

According to a September market assessment by Olam Group, a large global agri-products firm, garlic planting for the 2023 harvest in China was 15-20% lower than the previous year due to COVID-19 circumstances, poor demand for fresh garlic, low pricing, and increased wheat support costs.