The price of garlic from storage in Jinxiang began to fall nearly a month ago when it was still 3.6 yuan [0.57 USD] per kg. The price has already fallen by 23.8%. At the same time, the trade volume in March increased in comparison with February. The overall trend in the garlic market is one where the price is falling, but trade volume is increasing.
Garlic plantation
The stored volume of preserved garlic has little competitive power in 2018. The majority of traders with warehouses have little hope for the prospects of preserved garlic. They're desperately trying to sell their stock, which allows purchasing traders to force the price down. Fresh garlic from Yunnan arrived in large volumes on the market in March. This supply put further pressure on the price of preserved garlic in warehouses. Apart from this, March is the month of political congresses and environmental agencies are more strict in their inspections. The entire sliced-garlic industry was forced to stop production in March, which greatly reduced the consumption of garlic slices. Decreased consumption in turn was one of the reasons for the price of garlic to drop.
The garlic supply from Yunnan will come to an end in mid-April, but the early-season garlic from Henan and Jiangsu will enter the market in large volumes right after Yunnan garlic leaves. There is not enough time to offload the enormous reserves of preserved garlic, which means that the prospects for garlic in warehouses is not great.
Source: sxrb.com