Onion prices have been on the rise recently. There are three reasons driving this trend, one is the unfavourable weather. Cold weather and heavy rainfall in the southern regions are adverse to harvesting and storage of onions.
Secondly, stock level is low, resulting in a weak supply in the northern regions, with onions from Yunnan in particular being the most scarce.
The third driver is speculation. While cultivation area is limited, stock level is low, and a long cold-storage life, onions have become a speculation item for liquid investment capital, rendering onion prices high.
Secondly, stock level is low, resulting in a weak supply in the northern regions, with onions from Yunnan in particular being the most scarce.
The third driver is speculation. While cultivation area is limited, stock level is low, and a long cold-storage life, onions have become a speculation item for liquid investment capital, rendering onion prices high.
Although prices increase, the sales volume on the retail market have not seen any drastic drop. Most consumers continue their usual acquisition. This wave of price increase is temporary. New supply from Sichuan, Shandong, and Henan is expected to boost availability in April and May. This will bring prices back to the normal level.
Source: www.jinhua.com.cn/
