China: Garlic price surge

As of April, the new garlic from Yunnan and other places have been listed in the markets. According to the normal practice, the garlics produced last year should go down. Surprisingly to the contrary this year, their price continued to surge. As of April 10th, the garlic wholesale price in Beijing Xinfadi vegetable wholesale market reached 13 Yuan/kilo, a 160% increase in compared with the price of 5 Yuan/kilo last year.

In the year of 2015, the garlic yields cut by 10%, which rate is not high enough to push such a radical garlic price rise. Instead, limited garlic stock, regional bad weather conditions such as rain and snows became the starting point of speculation, which impacted the market's anticipation for low garlic yields and further paved the way for their price rise.

Yunnan new garlics are available now in the market, and the new garlics grown in northern areas will gradually come to the market normally, therefore it is expected that to a certain extent, the stocked garlic price will go down.

Source: China Securities Network