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Garlic speculation continues in China
China
Thursday 20 May 2010
FJ
With a price multiplied by 10 in 2 years, garlic is dearer than pork.
In China, garlic price knew a vertiginous increase: 2 to 3 yuans were enough for a 20 kg bag in 2008; today the price is 200 yuans (that is 30 US dollars).
In some regions, garlic is still sold to more than 20 yuans by kilo. Other products as French beans and hot peppers knew considerable increases.
This vertiginous increase also attracted speculators who bought of the garlic before the harvest, and stored it and sell it with a certain profit. Some people became easily millionaires.
The national Bureau of Statistics indicated that the wholesale price of garlic skyrocketed 10 fold from a year earlier, while average vegetables prices in April surged about 25 % from a year ago.
Another governmental organization, a Committee of development underlined in a press release that the garlic price was too low in past what led to a decrease of the production.
The decrease of surfaces and production led to an increase which was amplified by an increasing demand caused by the fear of the flu A.
The professionals expect that the courses remain at a good price, with some “tops and low” but without returning to the prices of 2008.
source : china daily, china org
