Garlic prices hit new high amid dwindling supplies

With prices hitting unprecedented highs in the retail markets, consumers are bracing themselves for changes in the prices of other basic kitchen staples.

In Maharashtra, the supply of garlic has witnessed a significant decline due to poor crops caused by adverse weather conditions in Nashik and Pune. The wholesale traders from several areas, including Mumbai, are procuring supplies from Gujarat, Madhya Pradesh, and Rajasthan, which further adds to the logistic costs and other local levies, The Times of India reported.

“With local supply being squeezed due to saturated stock and scanty production because of insufficient rainfall during monsoon and unseasonal rain later we have to depend on supply from Gujarat, Rajasthan, and Madhya Pradesh that has been an expensive affair,” Ashok Valunj, Mumbai APMC director, told the national daily.

The supply of garlic from the southern states was also affected, leading to inflation.

On December 8, the central government imposed a ban on the export of onions till March 2024 to control the prices, which started rising in November.

According to reports, the ban has resulted in unrest among farmers as the onion farmers are already facing several challenges in the wake of drought, which was followed by unseasonal rainfall.

The decision was taken by the government to curb inflation. A notification in this regard was issued by the Director General of Foreign Trade (DGFT), stating that the export policy of onions has been amended from ‘free’ to prohibited.

Kamal Singh Anjana, president of Madhya Pradesh Bhartiya Kisan Sangh, told The Free Press Journal that rains have damaged the crops in various parts of the state, because of which the prices of garlic have gone up to ₹300 per kg. He added that prices of ginger and green peas have also witnessed a significant increase.

Traders believe that the garlic prices will remain unchanged for some time as the new crop will take time to hit the market.