Rising supplies and dropping exports have dragged garlic prices to a five-year low across the country.

At the Neemuch market in Madhya Pradesh prices tumbled to as low as ₹250 a quintal, with the modal price at ₹1,000 for December 4. Arrivals hover around 15,800 quintals.

Traders attribute the fall in prices to increased supplies. Exports have also taken a hit as the competing Chinese crop has reportedly grabbed the markets in the US, Europe, the Gulf region and South Asia.

“Exports are down. We couldn't compete with China's price and quality. They have bigger bulb and offer better price. This has added to the overall domestic supplies. We are still seeing arrival of the last year's crop even as the fresh crop has started coming in. This is putting additional pressure on prices,” said Ashok Kothari, a trader-member at the Neemuch APMC.

Farmers, on the other hand, are disappointed with the lack of government support to boost exports. “The government should have given export assistance to ease the supply pressure. Farmers have incurred huge losses. They are still holding on to at least two months’ stocks,” said Narayansinhji Rathod, a farmer leader from Jawra in Ratlam district of MP.

In 2016-17, over 16.93 lakh tonnes (lt) of garlic were produced from 3.20 lakh hectares with an average yield of 5.28 tonnes per hectare.

However, farmers in Madhya Pradesh are better off as the State government extended the benefit of price differential scheme — Bhawantar Bhugtan Yojana — for the garlic crop as well. “A section of farmers benefited from this but the returns could have been better if exports were encouraged,” said Rathod.

In Gujarat and Rajasthan, the two leading garlic-producing regions, the crop is lying with the farmers, who are waiting for better prices.

A farmer from Gujarat's Jamnagar district, Bhikhabhai Marakana, said that most farmers in the Saurashtra region are disappointed with the sustained low prices of the crop. “Prices have come down to a third of what they were last year. Most farmers had held back the crop anticipating an improvement in prices, but nothing happened and, today, we may have to give away garlic as goat feed,” said Marakana.

According to him, the crop this year will also be disappointing due to water shortage. This will result in reduced crop for the coming season. Sources at the National Horticultural Research and Development Foundation (NHRDF) maintained that the current price scenario of garlic crop is a result of demand-supply.

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NHRDF officials said the farmers got lured by attractive prices for the bulb the previous year. This prompted them to grow more garlic — much more than domestic requirement. The situation turned adverse after disappointing exports.

“The international market is very competitive and due to better quality and attractive prices, Chinese garlic gets preference. This added to the domestic supplies,” said an official.

He added that garlic sowing in Rajasthan, which used to be around 40,000-50,000 hectares, jumped to over 1 lakh hectares last year. “In the absence of exports, value-addition can help in ease the stock situation,” he said adding that overall garlic sowing for this season will drop leading to better prices in the next six months.

With water shortage posing a major challenge, farmers in the garlic-growing regions of Rajasthan may turn to low water intense crops. Hence, the acreage in Rajasthan is likely to come down to 50,000-60,000 hectares. Similarly, in Gujarat's Saurashtra region, water shortage will alter the cropping pattern. “There is a good enthusiasm for garlic among farmers with irrigation facility. Because with water shortage, the overall garlic output is likely to dip next year and it is believed that the bulb will fetch better prices,” said Ramesh Bhorania, a farmer leader near Rajkot.

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