The ginger market last year was very sluggish. In previous years, the basic price at the growers could be sold at about 6-10RMB, but last year, it was only 1.4RMB per kilogram when it was first harvested. When selling it at this price, many ginger farmers incurred losses. For this reason, many ginger farmers had to choose to stock up and plan to wait for the next year to sell them. According to past market figures, the price of ginger will gradually rise to more than 10RMB starting from May every year, and ginger farmers can sell at a good price at that time.
However, everyone thought that the ginger market would see a rise, and nobody expected prices to drop. The selling price has dropped to 1RMB per kilo, which has hit many ginger farmers.
In fact, the reason why the ginger market has fallen is also due to the obstruction of exports. In previous years, China's ginger has been exported to many countries, which can greatly alleviate the problem of excessive domestic production capacity. However, in the past two years, for various reasons, exports have been restricted. As a result, the domestic market is oversupplied, and the price at the origin cannot be sold at a good level.
At the same time, the retail price of ginger in the market is too expensive, generally selling at about 10RMB/kg, and people's desire to buy is not high. As a result, the market is slow and farmers have a lot of inventory, so the price of ginger on their side cannot be sold at a higher price.
Source: garlic market analysis