Hoarding, speculation jack up garlic, ginger prices
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Prices of cooking staples like ginger and garlic have doubled over the past year, according to the Ministry of Commerce. A ministry survey done in 36 cities found garlic prices shot up 96 percent, while ginger prices also rose 90 percent.
"Hoarding and speculation of these two products exists to some extent, and this is driving up the prices," said Wang Bingnan, director of department of market operation with the ministry, speaking at an industry meeting Saturday.
October price levels for agricultural products grew about 14 percent year on year, according to the Ministry of Agriculture.
The trend is expected to continue due to increasing labor and land costs, said Zhou Wangjun, deputy director of the department of pricing with the National Development and Reform Commission.
Compared with agricultural commodities such as food grains and cotton which are controlled by the government, it is much easier for hot money to make waves in the agricultural market for products such like garlic, ginger and vegetables, which require close government regulation to ensure stable prices, said Zheng Fengtian, a professor at Renmin University of China.
Garlic prices started increasing in early 2009 from below 1 yuan ($0.15) per kilogram. Other products that have experienced the same price jumps include black beans, mung beans and apples.
The National Development and Reform Commission, China top economic planner, said in July that it would keep a tight grip on hoarding and speculation of agricultural products, when a Ministry of Commerce report said prices of about 70 percent of agricultural products were on the rise, especially mung beans and vegetables.
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