India: Garlic supply stalled, prices almost double
Prices of garlic, a key kitchen staple, have hit the roof as supply from across Maharashtra has almo…Prices of garlic, a key kitchen staple, have hit the roof as supply from across Maharashtra has almost stopped due to hailstorms and unseasonal rainfall. This has compelled wholesale traders to import garlic from Ooty and Malappuram in the south and Madhya Pradesh.
Compared to last week's rates, retail prices have almost doubled from Rs 130 to Rs 260 now. Fewer trucks coming into the APMC market in Vashi and high logistic costs have helped push the prices even higher, burning a hole in the common man's pocket. The rise in retail prices are much higher than the underlying wholesale rates.
"A fortnight ago, the prices were Rs 100 a kg in wholesale, whereas it was being sold at Rs 130-140 in the retail market. With local supply being marginal due to scanty production, we have to depend on outside supply, and that has been an expensive proposition. Now the wholesale prices have gone up to Rs 150-160 depending on quality. But it's retailed at the highest price of the season," said Amit Yadav, a wholesaler.
According to traders, the new crop will take time to hit the market; till then, the prices are expected to stay high. "We have noticed more damages being sorted out from the supply coming in from outside which automatically pushes the retail price high," said a retailer, Manoj Dedhia.
Prices of onion and potatoes, included in the essential commodities category for yet another season till July 2016, thus extending the ban on hoarding for one more year, remained stable.