After the Spring Festival, prices of agricultural products on the market fluctuated to varying degrees, some fell back to rational levels, while others continue to surge.
Recently, the price of onions has increased nearly 8 times compared to the same period last year.
Last year, the onion prices continued to stumble endlessly, what are the main driving factors for such an significant increase? Jiang Hongxia, market analysts from Jiangsu Province believes that the reasons are as follows: according to the past practice, this season is supposed to be the time when Yunan onions swarmed to the market. However, this "main onion force" did not come to the market as expected due to bad weather conditions and market factors such as supply and demand imbalance.
As a consequence, the onions listed in the market at the moment are much lower in volume & quality, while higher in price. Next to this, the supplementing volumes from cold storage onions were much lower as well. Due to the low onion prices last year, wholesalees are not interested in stocking more onions in their cold storage.
These low cold storage volumes, together with the low production yield in Yunan province, resulted in the significantly high onion price. It is expected that its price will decline a bit in the future, but its overal price will certainly be substantially higher than the same period last year.
