Why Do Onion Prices Keep Rising?

In China, onion planting areas are mainly distributed in Shandong, Henan, Jiangsu, Gansu, Inner Mongolia, Yunnan, Sichuan and other places. According to the statistics of Jinxiang and Gaotai, two important onion producing areas in Shandong Province, the price of onion in 2019 is stable in the early stage, but after August and September, the increase is particularly obvious.

As for the reasons for the rapid increase of Garlic Prices, some insiders said that first, in recent years, the market price of onion continued to be low, and the profit of onion planting was small, which weakened the enthusiasm of farmers. In 2018, the area of Shandong, Henan, Gansu and other major production areas decreased slightly. Secondly, due to the rotten condition of some onions in stock, the storehouse urgently handled some low-grade goods sources in the early stage. At present, the surplus in the storehouse is mainly good onions. At present, the supply of retail goods is basically over, and the storehouse is in a strong mood of covering goods and waiting for inflation. Moreover, the sharp increase in onion exports has driven the price up rapidly.

In Jinxiang, one of the main onion producing areas in China, another important factor in the rise of onion price is the sharp increase of export volume. In 2019, the onion export trade volume in China’s main onion producing areas is very large. Compared with previous years, the onion foreign demand in 2019 is much larger than that in previous years.

In recent days, the China Garlic Price is basically stable, which is lower than the beginning of the month. Since October, the price of onion has been advancing rapidly, which makes the current onion market not fast, some areas are unsalable, the price of the second-hand goods of the storer has dropped, and the price of high-quality onion is still high.