Recently, ginger prices on the market have been on the rise. Generally speaking, the planted area over recent years has been stable with slight increases, but natural disasters led to lighter harvests. For example, typhoons and floods frequented northern China in 2019, impacting the harvest that year. Rainy weather aggravates bacterial wilt which damages rhizomes and roots underground and stems and leaves, resulting in lower yields in the past two years.
In addition, as it is widely reported that this year's supply is insufficient, buyers are concerned about possible shortages and are active in sourcing activities. Moreover, the trading season ended early in some production areas around Shandong, and part of the traders and distributors moved a concentrated production area to source the product, which also played a certain role in raising prices. At the same time, the Covid-19 pandemic is still raging globally. Due to its unique health benefits, ginger's export demand increased earlier this year, which also boosted prices.
It is expected that prices may drop before the Spring Festival, but not to a great extent. This is mainly due to the fact that ginger can be stored for two to three years and most growers have their own cellars and have high expectations for good prices.
Source: China News