Financial Times FT.com

Speculators smell chance with China garlic

By Robert Cookson in Hong Kong and Patti Waldmeir in Shanghai

Published: November 25 2009 18:58 | Last updated: November 25 2009 19:32

China, already beset by a worrying real estate bubble, is now grappling with surging prices for a dinner table staple closer to home – garlic.

The world’s largest producer of the pungent bulbs, China has seen wholesale prices rocket as much as 15-fold since March in large cities such as Beijing, forced up in part by a combination of reduced acreage being planted by local farmers because of the recession – and a belief that garlic can keep away swine flu.

Garlic bulb

World gets a taste for garlic: the largest producers of the pungent bulbs have seen wholesale prices rocket as much as 15-fold since March in large cities such as Beijing because people believe it can ward off swine flu

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