The prices of vegetables in China have been climbing since November due to bad weather conditions. But the good news is that the sun is slowly coming through the clouds. With increases in supply, the prices are also starting to stabilise.
In a supermarket in Beijing, the prices of veggies are either flat or have started to decline.
A Beijing resident said, "The price has hold steady in recent days."
Despite this recent trend, vegetables are still pricey. Data from the Ministry of Agriculture shows that the price of 28 kinds of vegetables has been rising over ten consecutive weeks.
Chen Mingjun, Secretary General of China Vegetable Circulation Assoc., said, "The reason behind the increasing price is the cold weather. Temperatures across China have hit their lowest in a decade, negatively impacting the growth of vegetables and their transportation to the markets."
A strange situation is that the retail price is nearly twice the price of wholesale. Analysts attribute this to the supply chain.
Fan Jianping, chief economist of State Information Centre, said, "Consumers complain about the agriculture produce price, but farmers don't benefit much. The supply chain is too long and pushes up the costs."
A silver lining. After weeks of strengthening, the rising pace is starting to ease, with some prices even showing signs of decline.
Copyright ©1999-2011 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
