Polarization between pomelo wholesale and retail markets in Chongqing, China

The pomelo is a popular fruit in the winter market because it is moist, tastes nice, and is easily stored. The wholesale trade in pomelo in Chongqing, however, is virtually frozen, while retail trade is flourishing. The retail price of pomelo is high and supply is consistent. Pomelos from outside production areas, Fujian in particular, dominate the market in Chongqing. Local pomelo are unable to compete with outside pomelo because farmers and traders pay no attention to appearance, packaging, sales volume, or price.

The pomelo harvest was small in 2018. The production volume in Chongqing dropped by more than 30%, while the production volume in Fujian dropped by as much as 50%. The current high price of pomelo is a direct result of the limited production volume.

The pomelo market flourished in 2017. This stimulated the enthusiasm of wholesale traders for large purchases of pomelo. With the limited production volume in 2018 fierce competition broke out between retailers who struggled to secure supply. Production areas increased the price of pomelo three times in December alone. This placed immense pressure on the profit margin of wholesale traders, and weakened the market position of Chongqing pomelo in comparison with Fujian pomelo.

Source: Chongqing Daily


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