The demand for thirst-quenching fruits is increasing rapidly. The quantities of watermelons being brought in and sold has doubled. But the pricing in the producing regions absolutely hasn't increased accordingly. Instead the price is collapsing. The main reason is that the supply is sufficient. This forces the production regions to lower their price again and again. On July 31, the average watermelon price was 0.4 RMB. That's a drop of 20% compared to July 24. The price on wholesale markets in selling regions is plummeting due to the overabundant sales quantities.
The main reasons are the following:
On one hand, the continuous rainfall of the last few days has caused watermelons to come into contact with water. They become spotted and a case of watermelons can lose their quality on multiple levels, especially with regards to taste. These watermelons can only be sold below their price. Add to this that the whole Chinese market sells watermelons, so the supply is generally outstripping the demand. The plummeting price is evident.
On the other hand, the living conditions of consumers have improved. So the quality requirements have become higher. Shops search out watermelons with better quality. This is one of the reasons why Dongbei, Ningxia and Gansu watermelons are so popular. Additionally, there is a long distance between de production region and the sales region, so the transport cost increases. This too explains why we see a backlash in prices on the wholesale market in sales regions.
Source: Yimutian