As it is known, China controls about 80% of the world export of garlic. Bad harvest of this year and enterprising Chinese speculators have caused the present boom: the wholesale price of garlic in the country increased by almost three times, and so provoked the sharp rise in the world market.
The situation began to deteriorate in 2015, when for 1 kg of garlic one had to pay about 10 Yuan ($1.47), and now - 13-14 Yuan (about $2). And in 2013-2014, the maximum price was 5 Yuan ($0.74).
As already mentioned, such a price increase has affected and other countries: in just a week in Pakistan garlic price increased by 9%. Last time such a situation was observed in 2009 and 2010, when, based on the swine flu the retail prices rose to 40 and the wholesale prices in 15 times. And the costs for exports of garlic rose by 40%.
According to traders, the prices can fall only to the end of the second quarter of this year. And it is only under the condition that the year will be fruitful, which is quite difficult to predict. Now, buy garlic wholesale or retail is almost impossible in China, as speculators bought the very large volumes.
By the end of 2016 the export of garlic from China fell by 12% (approximately 895 thousand tons). This was due to unreasonably high prices and the lack of supply. Also, China controls 90% of the exports of dried garlic. However, due to the fact, that environmental standards are much tougher now, many factories closed their production, resulting in a reduction of supplies and increased prices, respectively. Nevertheless, the price trend has now acquired its own life. During 2016, the price of garlic rose more than twice. This was influenced not only by the fact that farmers began to harvest in the hope of rising prices, but also that speculators from cities entered with large sums of garlic business.
Many people knew that this year the garlic harvest was low. So they thought, "On the difference in price, I will make a profit».
However, bad and good harvests of garlic existed in the past. Now, speculators start to play an important role. This was partly due to the fact that the Chinese authorities are struggling with "bubbles" in the stock market and real estate market, and investors are looking for new opportunities.
