Prices of bird's eye chillis are dropping this week, as reported by the Henan Wanbang International Market. There are several factors that have contributed to this price drop. Firstly, the number of production areas as well as supply volumes have both increased. As days get warmer, the chillis available on the market are now coming from Yunnan, Guangxi, Hainan, and Vietnam.
The second factor is the reduction in transportation costs. With the product origin moving from Vietnam to China, transportation and labor costs have also decreased. Transport costs have dropped from 25,000 yuan (3,231 euros) to around 10,000 yuan (1,292 euros). Also, there’s great pressure from the competition on the market.
As the weather gets increasingly warm, there are all kinds of peppers on the market, whose quantities are large and prices low. For example, Hangzhou peppers are sold at 5.0 yuan (0.65 euros)/kg, red chillies at 7.0 yuan (0.9 euro)/kg, green pepper at 2.8 yuan (0.36 euro)/kg, and long green pepper at 7.5 yuan (0.97 euros)/kg. This is also why the prices have dropped.
Local bird's eye chillis will be ready to hit the market next week, and it’s expected that prices will continue to fall.
Source: Henan Wanbang International Market