The wholesale price of pepper in the Xinfadi Market is currently 0.8-1 yuan [0.12-0.14 USD] per 0.5 kg, which is a decrease of 10% in comparison with the previous week. The main reason for this development is the scorching hot weather. Most of the peppers currently on the market come from Ulankhad in Inner Mongolia, while a smaller volume comes from Zhangjiakou in Hebei. This is peak supply season for peppers, and there is abundant supply. The traders who've already transported their peppers to the market are now unable to store them for long in the scorching hot weather. The peppers easily rot, so traders must quickly sell the peppers, and they are unable to maintain high prices.
The price was quite strong to begin with because the overall surface area devoted to pepper production slightly decreased this year in comparison with the previous year. It is only in the last few weeks that the price began to fluctuate. When the weather cools down and peppers are more easily stored, traders will remain firm and the price will stabilize.
Source: Beijing Evening Paper
