Lanzhou garlic prices soar as shortage bites GansuUpdated: 2016-11-22
By Ge Jieru ( chinadaily.com.cn )
Garlic is among a list of commodities with escalating prices due to a shortage of supply in Northwest China’s Gansu province.
The garlic retail price had soared to 36 yuan ($5.22) per kilogram by Nov 13. Moreover, the whole price of garlic has risen 60 percent compared to the beginning of 2016.
“Today, I bought eight cloves and it cost me 16 yuan, which is too expensive,” said a Lanzhou local.
In the city’s Wuquanshan Open Market, the garlic selling business is not looking good. “Last year, the price of purple garlic was about 10 yuan per kilogram, but now the price is 30 yuan,” said a retail vendor from the market.
“The price of garlic has increased but this has not helped our trade,” the retail vendor added.
According to many Gansu’s garlic sellers, those found in Gansu markets are generally from Yunnan and Shandong provinces. This year, garlic output in these places has fallen due to a sharp decline in price in the past few years, with many growers switching to more profitable crops.
“In last two years, the garlic price has not been good, which has meant less people are planting,” said Yang Junhong, a garlic producer.
Yang also pointed out that speculative investors are also the reason of the sudden sharp garlic price increase.
To try and rectify this problem, the National Development and Reform Commission has launched a supervision mechanism to avoid price lurches.
An official from the central bank said that China will stick to its prudent monetary policy, with an appropriate degree of flexibility and timely pre-emptive adjustments.
Edited by Owen Fishwick