PRICES of cooking staples like ginger and garlic have doubled over the past year, according to the Ministry of Commerce over the weekend.
A ministry survey done in 36 cities found garlic prices shot up 96 percent, while ginger prices also rose 90 percent.
Hoarding and speculation of these two products exist to some extent, and this is driving up the prices, said Wang Bingnan, director of department of market operation of the ministry, speaking at an industry meeting Saturday.
October price levels for agricultural products grew about 14 percent year on year, according to the Ministry of Agriculture.
The trend was expected to continue due to increasing labor and land costs, said Zhou Wangjun, deputy director of the department of pricing with the National Development and Reform Commission.
Compared with agricultural commodities such as grains and cotton which were controlled by the government, it was much easier for hot money to make waves in the agricultural market for products such as garlic, ginger and vegetables, which required close government regulation to ensure stable prices, said Zheng Fengtian, a professor at Renmin University of China.
Garlic prices started increasing in early 2009 from below 1 yuan (US$0.15) per kilogram. Other products that have experienced the same price jumps include black beans, mung beans and apples.
The National Development and Reform Commission, China s top economic planner, said in July that it would keep a tight grip on hoarding and speculation of agricultural products, when a Ministry of Commerce report said prices of about 70 percent of farm produce were on the rise, especially mung beans and vegetables.(SD-Agencies)
