Short supply leads to high pepper prices

"The prices of chilli peppers and bell peppers continuously increased in the last two weeks. The rea…

"The prices of chilli peppers and bell peppers continuously increased in the last two weeks. The reason for this development is the gradual retreat from the market of peppers from production areas in South China. The peppers from greenhouse plantations in north China are not yet ready for the market." This is according to Liu Tong, Director of the Statistics Department at Xinfadi Agricultural Wholesale Market.

The majority of peppers currently on the market in Beijing comes from Hainan, Guangdong, and Fujian, as well as greenhouses in Qingzhou, Shandong, and Chifeng, Inner Mongolia. The peppers from Hainan are already retreating from the market. Production areas in Zhanjiang, Guangdong, and Zhangzhou, Fujian, only supply small volumes of chili peppers to the market in Beijing. The supply volume from greenhouses in north China is insufficient and requires additional supply from other greenhouses.

Greenhouses in Shandong suffered from half a month of continuous rainfall and their pepper supply is delayed. In other words, there has been a supply shortage of peppers and the price rapidly increased in the last half month. Liu Tong worries that when numerous production areas will supply large volumes of pepper at the same time in one month from now, that the price will suddenly drop.