Prices of more than 200 types of traditional Chinese medicine (TCM) have soared in Southwest China's Yunnan Province as a result of a prolonged drought and plunging output, two industrial bodies said yesterday.
"Persistent drought since the beginning of this year has caused a severe shortage of water resources, which are vital to the healthy growth of TCM herbs. If the drought continues for another month, it will have a big impact on the output of TCM and push prices up further," said Jiang Erguo, director of the TCM Information Center attached to China Association of Traditional Chinese Medicine, told the Global Times.
Jiang did not elaborate on how much the prices would climb as a result of the drought but said there had been at least a 10 percent hike in prices since the Spring Festival, which ended early this month.
The Medicinal Materials Chamber of Commerce in Yunnan Province said that there has actually been a drought in the province for the last three years, which has cut the output of TCM herbs, causing prices of more than 200 types of the traditional medicine to jump.
Over the last year, about 80 percent of the TCM in the market has seen price hikes of up to 30 percent, the chamber said.
The chamber also expects the tight supply of TCM and consequent price hikes to continue, because the growth cycle of TCM herbs is long and it will take time for the effects of the drought to pass.
The prolonged drought in the province has so far this year affected 373,266 hectares of crops, with failure of the harvest in 21,600 hectares, along with economic losses exceeding 600 million yuan ($95.28 million), according to the Department of Agriculture of
Yunnan Province.
"The drought not only caused cutbacks in TCM output and supply but also affected the quality of the medicine. Dealers have found it difficult to replenish their stock," a staff member at Kunming Juhuayuan TCM Market in Yunnan, told the Global Times.
"The rising costs, gloomy global and domestic economic prospects as well as credit tightening policies since the second half of last year have made TCM manufacturers reluctant to restock. That has dampened the enthusiasm of herbal medicine farmers, which has also driven up prices," said Li Qiang, director of the Traditional Chinese Medicine Market Special Committee.
"But the drought in Yunnan is only regional, and only affects the supply of the medicines that are mainly found in the region. It won't have a big impact on the overall supply of TCM nationwide," Li said.