The mung bean price hike slowed down 50%, from its highest at 9 yuan a kilogram to 5-6 yuan a kilogram within 10 days, the First Financial Daily reported on Wednesday.
Experts say this dramatic drop is both due to state regulations and market adjustments.
The National of Development and Reform Commission (NDRC), the Ministry of Civil Affairs and All-China Federation of Industry & Commerce had jointly sent special investigative teams to major mung-bean planting areas in Northeast China's provinces. This put huge pressure on bean planters who feared facing punishment if they intentionally stocked up on agricultural products, an expert said.
In addition, the financial punishment from NDRC also was a factor, which stated that for any form of malicious stocking-up, business owners would be required to pay a fine of five times their illegal incomes; in serious cases, fines could reach up to one million yuan.
However, economic experts said the price drop is largely due to market adjustments - the surplus of mung bean products and low import mung bean prices.
"Seventy days and 80 days later, new mung beans will show up in the market, which is predictable surplus than market needs because we were all planted in this area, and the amount of mung bean has exceeded three months' needs," a bean farmer said.
The low import bean price also posted a threat to local markets. The recent import bean wholesale price had dropped to 5.5 yuan a kilogram, while local ones are 7.5 yuan a kilogram, said Wang, a farmer.