Tang Ke, head of the Market and Economy Information Office in the Department of Agriculture said, in response to this situation, that the main reason for the low price of garlic is excessive supply. First, the surface area devoted to garlic production has reached a record high. Smaller production areas near large production areas in particular are developing fast. This rapid expansion is in response to the high garlic price in 2016. The total surface are devoted to garlic production increased by 20.8% and 8.0% in 2017 and 2018 respectively. Second, the harvest per hectare has increased and the garlic volume placed in storage in 2017 is relatively high. This has caused a situation where supply is more than sufficient.
Tang Ke further stated that the situation will remain uncertain in the second half of this year as supply and demand will develop, the government will adjust policy, and both domestic and foreign markets will cooperate. The most uncertain periods will be during summer and autumn festivals when Chinese agricultural products experience peak season. The pressure of market supply will certainly increase in these times.
Source: eeo.com.cn
