Generally speaking, as vegetable supply volumes and varieties increase during the summer season, it is normal that the vegetable prices decrease. According to the report of Agriculture China, the prices of a lot of vegetables have increased due to the storm impact in the Southern region, except for the price of onions, they decreased significantly.
As for the main driving factor for this price decrease, it is mainly due to the large stock volume. Looking back to the same period as last year, onion prices kept rising and its price reached 3 Yuan per kilo, which led to more onion growth.
Based on supervised data, in 2016, the onion cultivation area increased very fast. Taking Shandong province and Henan province as an example, their onion cultivation increase rate is more than 20%. The vast expansion led to inevitably the imbalance between the supply and demand.
Source: CNR network