Now garlics were priced at 8,000 yuan per tonne in wholesale from Zhongmou County, one of the country's famous garlic production bases, to Zhengzhou, provincial capital of Henan, said Zhang Yangzhou, a garlic broker in Zhongmou, also in Henan.
"Now you can never see the scenes that many just discarded garlics in 2007 and 2008 for there were no buyers," he said.
Zhang attributed the soaring garlic prices to short supply.
Peasants cut garlic acreage, resulting in short supply and higher garlic prices," Zhang said.
China's garlic exports expanded along with global economic recovery, insiders said.
Some blamed the soaring garlic prices to speculation. "Profits from garlics were mostly pocketed by brokers. The more expensive garlics grow, the more willing investors will buy," said a broker, who declined to be named, in Zhongmou.
"Garlic prices will drop after new garlics are harvested in a week, but the price drop will not be drastic," Zhang said.
"It's reasonable for garlics to be priced at 5,000 yuan to 6,000 yuan per tonne, namely 5 yuan to 6 yuan per kilogram," Zhang said.
Farm produce prices in China's 36 large- and medium-sized cities have risen for three consecutive weeks, according to a report from the Ministry of Commerce Tuesday.
Food prices account for 34 percent of the weighting in China's consumer price index (CPI), a major gauge of inflation.
China is yet to report its CPI figure for April. China's CPI rose 2.2 percent in the first quarter of 2010 from the same period last year.
Source: globaltimes.cn
"Now you can never see the scenes that many just discarded garlics in 2007 and 2008 for there were no buyers," he said.
Zhang attributed the soaring garlic prices to short supply.
Peasants cut garlic acreage, resulting in short supply and higher garlic prices," Zhang said.
China's garlic exports expanded along with global economic recovery, insiders said.
Some blamed the soaring garlic prices to speculation. "Profits from garlics were mostly pocketed by brokers. The more expensive garlics grow, the more willing investors will buy," said a broker, who declined to be named, in Zhongmou.
"Garlic prices will drop after new garlics are harvested in a week, but the price drop will not be drastic," Zhang said.
"It's reasonable for garlics to be priced at 5,000 yuan to 6,000 yuan per tonne, namely 5 yuan to 6 yuan per kilogram," Zhang said.
Farm produce prices in China's 36 large- and medium-sized cities have risen for three consecutive weeks, according to a report from the Ministry of Commerce Tuesday.
Food prices account for 34 percent of the weighting in China's consumer price index (CPI), a major gauge of inflation.
China is yet to report its CPI figure for April. China's CPI rose 2.2 percent in the first quarter of 2010 from the same period last year.
Source: globaltimes.cn
