The price of Chinese garlic was still alright when garlic had just entered the market. However, in late June the price began to fluctuate. Many traders were hesitant to sell when the price dropped, because they believed the price would rise again. When temperatures fall, garlic begins to grow new sprouts, unless the garlic is entered into cold storage on time. The price immediately drops when garlic begins to sprout.
Covid-19 prevention measures hindered garlic transport in August, and many traders had difficulties bringing the garlic to cold storage facilities. The measures were particularly strict in Zhongmu and Qi counties, both in Henan. The garlic reserves there are rather small, and people are holding garlic in private storage. Even now that the garlic market is opened again, the number of garlic trucks is still rather small, and border control procedures are still quite strict. These conditions have an unfavorable impact on the garlic market conditions in Henan.
Current market demand is not great, but the market is stabilizing. The price is still weak, and that is the result of a large volume in storage and poor conditions in the export market. China exported 165,4000 tons of fresh garlic in July, which is 24.46% less than the 218,900 tons of garlic China exported in July last year. This is the fifth month in a row that the export volume shrunk. Garlic export is not very profitable at the moment, while domestic market demand is regular, so the garlic price is not great.