The chili market has been rising since the second half of last year. Recently, however, the price of certain varieties has plummeted in some areas, especially thin-skinned pickled chilis. Some have dropped from over 5 yuan per half a kilo to 0.7-0.8 yuan. The sharp fall in prices may be the result of the following factors:
First of all, recent weather in Guangdong, Hainan, Yunnan, and other places has been good and the temperature has been suitable, so the growth is fast and the market volume has increased significantly.
Secondly, as the Spring Festival holiday has not yet ended, many factories have not yet started and schools are still on holiday, so overall consumption has not yet picked up and the demand is small. Many traders report that chillies are hard to move in wholesale markets.
However, the current plummet of the chili market is mainly manifested in the areas mentioned above. Although prices in most production areas, such as Shandong and Liaoning, have also declined, the overall prices are still good.
Source: Chinese Vegetables