Flooding in 'fruit basket' fuels price hike

Prices for fresh produce, including vegetables and eggs, could increase as a result of rising consumption demand combined with bad weather across the country, the Ministry of Agriculture and Rural Affair said on Friday.

Vegetable prices last month were up 2.3 percent compared with June, according to the ministry.

Unprecedented flooding triggered by incessant rain and a last-minute discharge of floodwaters from upstream reservoirs have wreaked havoc in Shouguang, Shandong province, known as China's fruit and vegetable basket-raising concerns that produce prices could spike.

The city produces 4.5 million metric tons of fruit and vegetables every year and is home to the country's largest vegetable wholesale market.

However, flooding has taken a toll on many vegetable growers and is already having an effect on prices.

Prices for dozens of types of vegetables grown in Shouguang have increased because of weather conditions between Aug 20 and 24, according to the city's commodity price bureau.

The cost of 1 kilogram of celery is up 52 percent compared with last month, while prices for peppers and eggplant are up 48 percent and 46 percent respectively, the bureau said.

Fresh food from Shouguang supplies areas including Beijing, Tianjin and Jiangsu province. Many of the cities affected have reported increases in vegetable prices, although experts said the Shouguang floods are not the only reason.

Li Shanghui, a researcher at the Chinese Academy of Agricultural Sciences' Agricultural Information Institute, said bad weather in recent weeks has affected the growth, harvest and transportation of vegetables, driving prices up.

Shouguang is one of the major vegetable production bases in China. Li said the others can fill the supply gap, meaning there should be no major price hikes nationwide.

Sun Rifei, director of the academy's Institute of Vegetables and Flowers, added that vegetables can grow in about two months, so floods will not affect prices in the long run.