China: Dry chili pepper prices explode

Influenced by the severe reduction in production in both production areas (Hebei province and Henan province), chili peppers from Jinxiang county in Shandong province are in high demand after having enjoyed a bumper harvest. The disequilibrium in price and demand caused the prices to rise. The purchasing price for 500 grams of chili peppers has reached the critical point of 0.95 EUR (7RMB), while the selling price for dry hot peppers from Qingdao reached 1.64 EUR (12RMB).

Market analysts believe that the reason that supply does not meet demand in the market for chili peppers is due to the large number of people stocking up on luxury items which, in turn limited the link between the distribution and sales of chili pepper. Also the continuously increasing prices were another reason for this. Come January next year large volumes of Indian chili peppers will enter the domestic market, which undoubtedly will lower the domestic price. Purchasers of and investors in chili peppers are advised to stay rational, and should by no means hurriedly follow the trend and incur losses.

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