Chinese Garlic Price Rapidly Rising
The price of garlic increased more rapidly in March and the price increased by 0.7 yuan [0.11 USD] per 0.5 kg between March 1st and 6th.
The garlic currently on the market that is getting more and more expensive is the garlic that entered storage between June and August last year. The new harvest of late-season garlic will enter the market in May. Will the price continue to maintain its high position then?
Furthermore, the overall surface area devoted to garlic production in 2019 is smaller than last year. Garlic traders who follow the progress of garlic currently in the field expect the price to maintain its high position this year. This is the reason that the price will remain high in the long-term, but in the short-term, garlic traders are holding on to their stock in order to push the price up. This is the reason that the price will increase in the short-term.
Even though people in the industry agree that market conditions are good for garlic this year, there is still a large volume in storage and when the new harvest garlic enters the market, the price will come down.