The price of ginger from Yantai, Shandong province, is growing rapidly. According to Yantai City Price Bureau, which monitors the agricultural markets of six city districts, on September 12, the ginger price had increased to 12.84 yuan per kilo, which is 24.18% higher than last week and 113.89% higher than last year. In just half a month, the price increased by 32.92%.
There are three main reasons why the price is rising. Firstly, there's a lack of ginger on the market. Secondly, cultivation area was reduced. And thirdly, farmers are holding back on sales in anticipation of even higher prices. In the case of ginger, price is the main factor that determines market demand and supply. There will be a short period of time, when prices will remain high, but in October-November a new harvest of ginger will arrive at the markets and it might lower the price. Since ginger is basically just a condiment, the market doesn't need a big amount of it and this price spike doesn't really affect customers.
Source: chinadevelopment.com.cn