From Chinese Press

Delicate spread, more to follow

(China Daily)
Updated: 2010-10-14 07:57

South Korea faces a kimchi (pickle) crisis as prices of cabbage and white radish soar. This is a warning to many countries, especially populous ones like China, says an article on Xinhua Daily Telegraph. Excerpts:

The rise in prices of some vegetables, especially cabbage and white radish, in South Korea is quite surprising. The average price of cabbage in South Korean markets and groceries this week is 10,000 won (about $8), five times the price last year.

Kimchi is an important part of Korean cuisine. But the skyrocketing prices of cabbage have kept many South Koreans away from the vegetable, which is essential for kimchi .

The result: More people are complaining about the South Korean government's failure to keep the prices low.

Similar to South Korea's "kimchi crisis", China has experienced a "pork crisis" before. In fact, it still faces a garlic-ginger crisis.

Though the impact of ginger is relatively nominal on the economy and society, a free rise in the prices of common vegetables such as white radish could play havoc with families and society.

The prices of vegetables in China's urban areas will remain high. As natural disasters such as low and high temperatures, rainstorms continue to hit parts of China, and growing vegetables may lead to speculative investment.

Recent years have seen vegetable fields relocated further away from city area. Since vegetable production decreases and delivery costs increase, the price is pushed up.

What deserves more attention is that in order to resolve the crisis, the South Korean government has already lifted the export duty on Chinese cabbage, which may create a huge market.

Relevant department should pay close attention and track the following progress, and make prompt policy in response.

(China Daily 10/14/2010 page9)