Sannong Zhongguo reported that the price of garlic increased even more rapidly in March. The price increased by 0.7 yuan [0.10 USD] per 0.5 kg between March 1st and 6th. Take purple garlic from Jinxiang, for example. The price increased from 1.7 yuan [0.25 USD] per 0.5 kg on February 28th to 2.4 yuan [0.36 USD] per 0.5 kg. In January this kind of garlic sold for only 1.2 yuan [0.18 USD] per 0.5 kg.
The garlic currently on the market that is getting more and more expensive is the garlic that entered storage between June and August last year. The new harvest of late-season garlic will enter the market in May. Will the price continue to maintain its high position then?
Garlic traders think that the wholesale price of garlic continues to increase because the new harvest has not yet entered the market and supply continues to shrink. Another reason may be that some of the larger garlic sellers are hoarding garlic.
Furthermore, the overall surface area devoted to garlic production in 2019 is smaller than last year. Garlic traders who follow the progress of garlic currently in the field expect the price to maintain its high position this year. This is the reason that the price will remain high in the long-term, but in the short-term, garlic traders are holding on to their stock in order to push the price up. This is the reason that the price will increase in the short-term.
Even though people in the industry agree that market conditions are good for garlic this year, there is still a large volume in storage and when the new harvest from Yunnan enters the market, the price will come down.
Source: cnr.cn