Chinese herb prices soar as drought continues

Kunming (CNS) – "The three year drought has dragged down the production of Chinese herbs in Yunnan Province," a local expert remarked on Tuesday. At present, over 200 kinds of Chinese herbs are fetching higher prices due to shortages, an average growth of 30 percent annually.

Yu Likang, chairman of the Yunnan Province Herb Chamber of Commerce, said in February that the decline in local production has directly led to large scale mark ups.

"The big picture is that precious herbs, including Pseudo-ginseng, Gastrodia elata and Cordyceps, have a higher value than before, with the price of pseudo-ginseng growing by nearly 40 percent over last year; the market price is now 600 yuan per kilogram," said Yu.

Ongoing drought conditions have led to weak seedlings and poor growth conditions for Pseudo-ginseng, a situation worsened by pest infestation and various plant diseases, said a businessman.