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Chinese Garlic Prices Are Expected To Remain Stable

by | Apr 8, 2022 | Garlic, Spices

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Despite the overseas demand for Chinese garlic falling by 20 percent in 2021 compared to 2020, the commodity’s price is expected to remain stable short and medium-term. Though there can be a price drop with the arrival of the new crop during the end of the third quarter, the overall trend will remain stable.

Factors Impacting The Price

Factors that can impact the Chinese garlic prices are the war between Ukraine and Russia, whose impact remains to be seen. The increase in freight and manufacturing prices can increase due to the war, which will affect the cost of the product.

Already some European countries have moved to Spanish garlic from China due to the high freight cost.

Current Price Trend

Reports suggest that since October 2021, there has been a weakening trend for the Chinese garlic in the market. As a result, the powder garlic from China decreased to $3,00 per kg CIF Rotterdam/Germany from $3,20 per kg CIF Rotterdam/Germany. In December, the price dropped further and is currently stable at $2,80 per kg CIF Rotterdam/Germany.

Future Prediction

It was expected that the commodity price would increase with less production, which was reported earlier. The reports of garlic production decreasing by 20 percent in 2022 compared to last year due to reduced acreage in planting is believed to be a misnomer.

In China, the total growing acreage for the crop has remained the same, and the weather condition during the middle stages of the growing season is believed to have been favorable for the harvest.

The outcome of Chinese garlic’s quality and overall production is based on the weather conditions for the next two to three months. It will eventually determine the price of the Chinese market for 2022.

These factors will impact the commodity’s price in the Chinese market, but the international and Indian markets will feel its effect.

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