The price of onions in the Beijing Xinfadi Agricultural Wholesale Market recently showed rapid growth. The price of onions increased by 16.13% in comparison with last year and by 125% in comparison with the same period last year.
What is the reason for such significant fluctuation? Zhang Junhua, data analyst at Beijing Xinfadi Market, explained that the low onion price last year is a major reason for the price increase this year. Onion farmers were discouraged by the low price of onions last year and the overall surface area devoted to onion plantation declined. Furthermore, some of the major onion producing countries suffered from extreme weather conditions that greatly reduced their production volume. This includes Southeast Asia, Japan, and Korea. Visiting traders from these areas turned to China for onions. The Chinese onion export volume rapidly expanded. This pushed the price up even further.
Source: Economic Daily