In March and April, there are still a number of public holidays that affect China's fruit and vegetable market. Before Tomb Sweeping Day, a national holiday on April the 3th, garlic prices on the Xinfadi market (the largest in Beijing) rose substantially again.
The wholesale price reached 19.5 RMB (2.67 EUR) a kilogram, which is an increase of 10% compared to last week, and almost 18% higher than last year. Traders say that this is the last craze for garlic on the market stage. At the end of last week, the price for garlic from the storehouses in Shandong province unexpectedly rose, which caught them unprepared.
However, the canceled garlic currently is in distress: there is price speculation but no market.
Currently, garlic from Yunnan province is entering the market in large volumes. The early harvested garlic is now almost completely sold out, while the later harvested garlic is about to appear on the market very soon. With so much product available, the price will continue to decline. New garlic from Shandong and Henan will only enter the market after another month. The plantations in both these provinces has grown in comparison to last year and growing circumstances have been favorable until now.
Simultaneously, there was an unusual price increase for garlic from the storehouses. There are three possible reasons. First, garlic in storehouses is currently controlled by a small group of large landlords. These have deliberately kept the garlic in stock, whereas smaller vendors have all ready sold their crop. In addition, although there is expected to be a garlic bumper harvest this year, current garlic exports still mainly consists of old garlic. This garlic can be sold for a period up to two years. Finally, sellers are aiming to make as much of a profit as possible before the new crop hits the market in its totality.