Chinese officials are giving subsidies to farmers to get more garlic into the market. After garlic prices doubled this year, they hope this will even out the prices and create more supply. While some remain optimistic others fear this push will only lead to a crash in the prices of garlic in the future.
Local authorities in Shandong and Henan, China's major garlic-producing provinces, are offering subsidized insurance programs for garlic growers and loan discounts for traders and processors to encourage farmers into the soaring market, which is boosting local economic activity and raising incomes.
