China price dip may hit India’s garlic exports
China accounts for nearly 70% of the global garlic production and its variety is less pungent and bigger in size than Indian ones and is preferred by buyers.
Asurge in Chinese garlic prices saw Indian exports spiral, recording the largest growth among the spices in 2016-17 at 92 % to reach a new peak of `307 crore. The robust growth continued till October last year after when a big crop pulled down Chinese garlic prices, eclipsing India’s advantage.
China accounts for nearly 70% of the global garlic production and its variety is less pungent and bigger in size than Indian ones and is preferred by buyers in the US and Europe.
Indian exports are mainly focused on Asian countries like Thailand, Indonesia, Vietnam and Malaysia.
Chinese garlic is currently priced around $450 per tonne compared with $200 per tonne for Indian ones. “On the face of it, the Indian prices look less. But the bigger size of Chinese garlic, taste and the enormous duty advantage China enjoys with several Asian countries have virtually driven the purchases away from India,’’ said Vinay Agarwal, director of Ginny Food, a leading exporter.