A few years ago the price of ginger was very high, at around CNY 6 for 500 grams at its peak. However, since March 2016, the price of ginger has been dropping from CNY 4 to CNY 0.8, currently, for 500 grams.
The reason for such a spectacular drop is because previously more and more farmers were drawn to cultivating ginger, anticipating profitability. As a result, In 2015, the area of farmland cultivating ginger increased exponentially. Provinces including Hunan, Hubei, and Fuzhou commenced their ginger cultivation. Furthermore, this year's bumper harvest also contributed to the over-supply.
On the other hand, the amount of ginger export this year has been very low. While previously, a lot of the production was exported to Korea and Japan, this year's trade has not been as favourable. Looking forward for the rest of 2016, as producers build up stock as a result of over-supply, the price of ginger is not expected to rebound.
