India Garlic Market

Market/ Product Overview

India is the second-largest producer of garlic globally, contributing approximately 16–18% of global production, with annual output exceeding 3 million tonnes as of 2023. Major growing states include Madhya Pradesh (40% share), Rajasthan, Gujarat, and Uttar Pradesh. Garlic is a key ingredient in Indian cuisine and a vital component in the processed food, nutraceutical, and pharmaceutical industries due to its strong flavor and medicinal properties. The Indian garlic market is largely unorganized, dominated by fresh bulb sales in local mandis, although value-added products such as garlic powder, paste, and dehydrated flakes are gaining traction in both domestic and export markets. Increasing urbanization, growing demand from the food processing sector, and rising exports to countries like Bangladesh, Vietnam, and Malaysia are driving the market's commercial value and integration into organized agri-supply chains.

Significance of India in Global Garlic Supply Chain

China holds the title of the largest garlic producer, contributing 73% of the global production, while India follows with 11% share as the second-largest producer worldwide (in 2022). Garlic is one of the essential spices in Indian cuisine and is used extensively in various dishes for flavoring and medicinal purposes. The country's favorable climatic conditions and diverse agro-ecological zones make it suitable for garlic cultivation across different regions.

India is among the top producers of garlic globally, contributing a substantial share to the global supply chain. The country's garlic production not only caters to domestic demand but also plays a crucial role in fulfilling international requirements through exports. India's presence in the global garlic market influences prices and availability, making it a key player in the supply chain dynamics.

India Garlic Supply & Demand Trend

India's garlic supply is highly seasonal, peaking between February and April. Despite strong production numbers, post-harvest losses account for nearly 25% due to poor storage and transportation infrastructure. In FY 2022–23, India consumed over ** million MT of garlic, with per capita consumption growing from 1.1 kg in 2015 to 1.6 kg in 2023, driven by dietary shifts and urbanization.

The domestic demand for garlic powder and paste grew at over **% CAGR during 2020–2023, particularly among food processors and restaurants. Supply, however, remains volatile due to price fluctuations in the fresh market. In 2023, garlic prices in major mandis like Lasalgaon and Mandsaur averaged INR 2,600 per quintal, up 17% YoY due to unseasonal rains.

On the processing side, India's installed capacity for garlic dehydration was estimated at ** MT in 2023, which operates at **-**% efficiency during peak seasons. Despite growing demand, processing capacity expansion is slowed by high capital requirements and fragmented sourcing mechanisms. Meeting both domestic and export demand sustainably will require improved aggregation and cold chain infrastructure.

India Garlic Market Growth Factors

India Garlic Market Segmentation

The Indian garlic and products market is segmented based on product type, form, end-use industry, and distribution channel. By product type, fresh garlic continues to dominate with over **% market share, valued at over US$ ** billion in 2023. However, processed garlic products like dehydrated garlic, paste, powder, and oil are growing rapidly, expected to reach US$ ** billion by 2032.

By form, the market divides into whole garlic, chopped/crushed, powdered, and extracts. Garlic powder and flakes, in particular, are registering a CAGR of 9.1%, driven by increased demand from snack manufacturers, seasoning companies, and fast-food chains. For instance, ITC’s Aashirvaad Spices unit reported a **% YoY increase in sales of garlic powder-based blends in FY 2023.

The end-use segmentation includes household, foodservice, pharmaceutical, and industrial sectors. The foodservice sector consumed over ** thousand MT of garlic products in 2023, showing a CAGR of 7.8%, while pharmaceutical and herbal sectors grew by 10.4%, thanks to the rising trend of garlic-based supplements and capsules.

In terms of distribution, traditional retail continues to hold **% of the market, while online and organized retail formats (like BigBasket, Amazon Pantry, and DMart) are growing faster at **% CAGR due to increased availability of branded garlic products. Rural consumption, aided by small-pack SKUs and regional branding, is also on the rise.

Price Setting Power of India

India's position as a major producer and exporter of garlic gives it significant influence over global prices, especially during peak production seasons. However, price setting power is also influenced by factors such as demand-supply dynamics, quality parameters, and competition from other producing countries like China. Additionally, fluctuations in currency exchange rates and trade policies can impact India's ability to set prices in the global market.

In early 2020, prices began at a high of approximately 150 INR/Kg before plunging to nearly 50 INR/Kg by mid-2020 due to oversupply, weak domestic demand, and closure of overseas trades dur to COVID-19 outbreak. Prices fluctuated around 32.50 INR/Kg during 2022, marking a sharp decline caused by excess production, reduced export demand, and supply chain challenges. However, from late 2023 onwards, prices surged dramatically, reaching a peak of 286.88 INR/Kg in September 2024, driven by reduced acreage under garlic cultivation, weather disruptions affecting crop yields, and strong export demand. Meanwhile, domestic demand for garlic surged due to the increase in onion prices, a substitute product, which further contributed to the rise in garlic prices.

The yearly average prices, after a steep 171% increase in 2019 due to supply shortages, prices stabilized in 2020 and 2021 with a modest 6% rise and 10% decline, respectively. In 2022, prices dropped significantly by 48%, reflecting oversupply and poor demand. However, the market rebounded strongly in 2023, witnessing a 95% increase, and continued the upward trajectory in 2024 with a 127% surge, driven by supply constraints, increased demand in export markets, and reduced crop availability. These price fluctuations are primarily attributed to seasonal supply variations, erratic weather patterns impacting production, rise in substitute products price, and changing domestic and international demand dynamics.

Key Garlic Markets in India

The largest market for garlic in India is Neemuch in Madhya Pradesh, which serves as the country’s primary garlic trading hub in terms of both volume and price discovery. Madhya Pradesh is the leading garlic-producing state, accounting for over 35% of India's total production, and Neemuch, along with nearby Mandsaur, forms the core of this agricultural activity. These markets handle garlic arriving from key growing districts such as Ratlam, Ujjain, and parts of Rajasthan, and play a crucial role in setting benchmark prices for garlic across the country. The Neemuch mandi is equipped with large auction yards and cold storage infrastructure that support high trading volumes throughout the year.

Lasalgaon in Maharashtra is India’s most prominent onion market, it also trades garlic significantly, though not at the scale seen in Neemuch. Other important garlic markets include Kota in Rajasthan, Indore in Madhya Pradesh, and Sriganganagar in northern Rajasthan. However, Neemuch remains the largest and most influential garlic market in India due to its scale, infrastructure, and central role in price setting.

India Garlic Trade (Export & Import) Trend

India is a net exporter of garlic, with significant export volumes to various countries, including the Middle East, Southeast Asia, Europe, and North America. The country also imports garlic to meet domestic demand during offseason periods or to supplement local production. Trade trends are influenced by factors such as crop seasons, quality requirements, tariff policies, and international market dynamics.

India exported 57.346 thousand tonnes of garlic (fresh/chilled, dehydrated garlic powder & flakes, and dried garlic) in 2022-23, valued at US$ 30.59 million. The country exported 36.83 thousand tonnes of fresh/chilled garlic. The ** company accounted for major share in exports of garlic oil in 2023-24 followed by **, **, and **.

In 2023-24, fresh garlic prices averaged at US$ 0.51 per kg, while dehydrated garlic and garlic flakes were priced at US$ 1.03 per kg and US$ 1.20 per kg, respectively. Garlic oil, a premium product of garlic processing, commanded an average price of US$ 27 per kg.

Market Competitive Landscape

Future Outlook

The future outlook for the Indian garlic market appears promising, driven by factors such as increasing consumer awareness, expanding export opportunities, technological advancements in cultivation and processing, and supportive government policies. However, addressing challenges related to quality control, infrastructure development, market access, and sustainability will be crucial for sustaining growth and competitiveness in the global market. Collaboration among stakeholders across the value chain and adoption of best practices will be essential for unlocking the full potential of the Indian garlic industry.