Beijing's wholesale vegetable markets have registered a price increase in garlic in recent days, showing prices rising 2.2 to 4 yuan/kg. It is estimated that this trend will continue until August of this year.
After mid-May when the fresh harvest of new garlic was brought on the market, dealers were worried that new garlic would squeeze out the old garlic market. The result was a mass sale of old garlic, which caused garlic prices to drop immediately. There may be several other reasons why garlic prices originally came down significantly. On May 4, the national wholesale price of garlic was 11-18.8 yuan/kg, while on June 1 this number had been reduced to 5-12 yuan/kg. Beijing's garlic prices actually dropped further from 6 yuan/kg down to 3-5 yuan/kg, but the good times did not last long. While wholesale price of garlic on June 27 was at 2.2 yuan/kg, there was a sudden rise to 8 yuan/kg on June 28.
Vegetable dealers are baffled by the fluctuations in price and are finding it difficult to predict the market. With garlic prices so high, bulk wholesale and resale is not lucrative for the dealers.
Although garlic acreage has increased, the impact of China's cold weather has cut production. Analysts have deduced that this year's garlic market has experienced a rush phenomenon, with people pushing to hoard garlic due to bad production levels and prices fluctuating wildly as a result. The overall trend is an expected rise in price for quite some time.
After mid-May when the fresh harvest of new garlic was brought on the market, dealers were worried that new garlic would squeeze out the old garlic market. The result was a mass sale of old garlic, which caused garlic prices to drop immediately. There may be several other reasons why garlic prices originally came down significantly. On May 4, the national wholesale price of garlic was 11-18.8 yuan/kg, while on June 1 this number had been reduced to 5-12 yuan/kg. Beijing's garlic prices actually dropped further from 6 yuan/kg down to 3-5 yuan/kg, but the good times did not last long. While wholesale price of garlic on June 27 was at 2.2 yuan/kg, there was a sudden rise to 8 yuan/kg on June 28.
Vegetable dealers are baffled by the fluctuations in price and are finding it difficult to predict the market. With garlic prices so high, bulk wholesale and resale is not lucrative for the dealers.
Although garlic acreage has increased, the impact of China's cold weather has cut production. Analysts have deduced that this year's garlic market has experienced a rush phenomenon, with people pushing to hoard garlic due to bad production levels and prices fluctuating wildly as a result. The overall trend is an expected rise in price for quite some time.
