Recently, chili prices have continued to climb. There are a few factors that have contributed to this. First of all, as prices were low during the same period last year, the planted acreages in part of the areas have slightly decreased this year. Secondly, the supply has been affected by the weather. For example, the flood season has had a great impact on chilis grown in mountainous areas in Hubei, and Yichang has been experiencing abundant rainfall over the past two weeks, leading to problems in harvesting and transportation.
Moreover, as the temperature in mountainous areas has dropped significantly and vegetables in northern production areas also need a significantly longer time to mature, growth has slowed down and the supply has decreased. At the same time, with the National Day and the Mid-Autumn Festival approaching, the demand for vegetables has increased.
On the whole, lower supply from some origins and the strong demand are the main reasons for the increases in pricing. How long can these increases last?
Industry insiders said that, on the one hand, we need to wait another dozen or so days before large volumes from Shandong become available on the market; On the other hand, it is forecast that many areas in South China are facing overcast and rainy weather - even heavy rainfall - while North China and Northeast China will experience rainfall and lower temperatures during the National Day holiday.
Many areas will encounter the lowest temperatures since the start of autumn. All of these factors will inevitably affect the supply. Coupled with the holiday stimulus, it is expected that chili market prices will remain high in the foreseeable future.
Source: Chinese vegetables