Over the past days, the marketed volume of fresh onions from Gansu has gradually increased, and the price is staying at 0.35-0.55 yuan per half a kilo, which is 0.1-0.2 yuan higher than that of onions from Shandong, Henan, and Jiangsu when they became available. Despite the increased volume, prices are steady with slight increases.
There are a few reasons for this. First of all, market demand has increased. In the first half of the year, affected by the Covid-19 pandemic, the volume exported was greatly reduced, the demand from the catering industry was weakened, and few onion processing factories were operating. Now, the outbreak in China is under control, the export volume has begun to increase, and the volume ordered by processing plants has increased, which has greatly driven the demand. As fresh onions from Gansu just became available, purchasers are beginning to purchase in large volumes, sales are going fast, and transactions are smooth. There are important factors for maintaining these prices.
In addition, onions in the storage have yet not been marketed in large volumes. Prices of the product from Shandong, Henan, and Jiangsu have remained low and due to lack of profit, most of the traders with stock in storage have been waiting for new developments in the market. Therefore, as most of the products available on the market are fresh onions from Gansu, prices have naturally maintained a steady pace with slight increases.
Moreover, vegetable prices as a whole have risen. Affected by seasonal factors, the recent heavy rainfall and floods in the south and the hot and dry weather in the north have lowered vegetable production. In addition, the high temperature has increased the storage cost of some vegetables, which has increased vegetable prices as a whole.
Source: Daily Headlines