As of August, the price of garlic in Jinxiang county, Jining city of Shandong Province, the so-called “garlic town” of China, has soared to 2.2 yuan ($0.34) per kilogram due to increased demand from the international market, according to a report from Chinanews.com on Tuesday.

The price reflects a 70-percent hike on figures from the middle of July. 

Statistics from the Shandong Jining Inspection and Quarantine Bureau on Monday showed that the city’s garlic exports in June amounted to 100,000 tons, up 122 percent on the same period in 2010. Due to the significant increase in foreign orders, garlic prices have been steadily rising since July 10.

According to the Department of Commerce of Shandong Province, the noticeable increase in demand from the local market is another reason for the rise in price. It total, local demand for garlic is expected to rise by 30 percent in 2011. Furthermore, as the middle of August is the best season for garlic storage, a large number of buyers are using the opportunity to stockpile garlic,  causing supply to lag behind demand and the price to soar.

In June 2011, the price of garlic fell sharply and broke an upward trend that had started in July 2010, when the local government encouraged farmers to grow organic garlic to improve the product’s quality and create a more high-end market for the commodity. 

Jinxiang county in Shandong Province, with a garlic planting area of 600,000 mu (40,000 hectares) and annual turnover of 2.6 million tons, is regarded as the pricing center of garlic in China.