In July, the Chinese herbal medicine trade should enter the off-season, but 2023 is an anomaly, the price from the beginning of the year on the high side.
In addition to the natural climate and other factors, many industry insiders pointed out that the involvement of lobbyists is to promote the main reason for this round of high prices of Chinese herbal medicines. Sichuan Provincial Pharmaceutical Industry Association of Chinese herbal medicines Chinese medicine tablets branch secretary-general Li Li introduced, in general, the Chinese herbal medicine price increases have cyclical, individual varieties of price increases are more common. But this year, Chinese medicine on the dosage of maitong, ginseng, Sichuan shellfish are rising, the unit price of the already high Cordyceps is also higher than the same period last year rose 30%. According to his rough statistics, more than 300 commonly used varieties of Chinese herbal medicines, 200 of them have different ranges of increase.
"The phenomenon of price gouging of Chinese herbs can clearly be seen in the market at present." Liu Xu, a contributing researcher at the National Institute for Strategic Studies at Tsinghua University, told Chengdu Business News - Red Star News that relevant departments can investigate some malicious speculation and hoarding behavior based on the price law and anti-monopoly law.
"I haven't seen this kind of increase in 40 years."
More than 200 herbs rose by more than 50%, and some drug dealers lost money on deliveries
Under the influence of high temperature and rain, June and July are generally regarded by the industry as the off-season for the trading of Chinese herbal medicines. But this year is anomalous, around a variety of Chinese herbal medicine prices since the beginning of the year remained high. "Commonly used large varieties of herbs are rising, the local angelica from 60 yuan a kilogram to 200 yuan a kilogram; 80 yuan a kilogram of ginseng, and now also rose to 220 yuan, Shayuanzi is up 10 times." Southwest Chinese medicine clinic, an old Chinese medicine practitioner exclaimed: "not normal, I've been a Chinese medicine for 40 years have not seen this rise."
Chinese herbal medicine market business has also been affected. In Guangzhou Qingping professional wholesale market of Chinese herbs, angelica prices have risen to 300 yuan per kilogram. Mr. Li of the Qingping market herbal medicine line told Chengdu Business News - Red Star News reporter that since the price increase, business has also become slower. According to Mr. Li's estimate, the store's wholesale volume of angelica has fallen by more than half.
From the origin of Chinese herbal medicines, storage base, to the market wholesale link, and then into the Chinese herbal medicines into the hospital, clinic retail industry chain, have felt the impact of rising prices, and even some of the beginning of the year signed a procurement contract for the pharmaceutical companies need to lose money delivery. An export business of Chinese herbal medicine factory of the pharmaceutical industry responsible for the introduction of Chinese herbal medicine factory generally through customer orders to measure the scale of procurement and production. At the beginning of the year, the factory in accordance with the practice of previous years to prepare for the customer's annual amount of about 20 tons of angelica, I did not expect to catch up with the price increase of angelica, and now there is a 5% to 10% of the factory angelica gap. In order to deliver on time, the factory considered to buy angelica and other raw materials at a high price, "a better drinking plant can only earn a little profit, some factories lose money to deliver."
China Association of Traditional Chinese Medicine in June, a report pointed out that Bozhou, Anguo, Yulin and several other major trading markets, there are more than 200 conventional varieties of annual increase of more than 50%, 100 conventional varieties of annual increase of more than 100%, 25 commonly used bulk herbs annual increase of more than 200%. The reporter consulted the Chinese herbal medicine world network of Chinese herbal medicine market found that common Chinese herbs such as angelica, firewood, ginseng, licorice, salvia seeds, white peony, atractylodes, forsythia, and other prices rose in the forefront.
July 12, the Sichuan Provincial Pharmaceutical Industry Association of Chinese herbal medicines Chinese medicine tablets Branch Secretary General Li Li also told reporters that, in general, the wholesale channel (such as the procurement side of the Chinese herbal medicines, Chinese medicine tablets factory, etc.) is the first to feel the price of Chinese herbal medicines. "The most ferocious increase is the unified angelica, so far about 260%."
Who is the "initiator"
Industry insiders called the influx of lobbying speculation, "like the stock speculation, speculation high."
Chinese herbal medicine prices in the end what is the reason? Li Li introduced, from the natural climate analysis, production is a cause of price increases. Affected by high temperatures and other factors, Angelica shoot rate is high, light long leaves do not grow roots, affecting the quality and yield of the effective parts of the root, planting costs increased, growers have turned to other herbs, resulting in a reduction in production.
Angelica main production area of Gansu Minxian a Chinese herbal medicine dealer also introduced to the reporter, the market is good, angelica mu yield 400 kilograms / mu, last year, only a few dozen kilograms, the reason is that angelica seedling shoot rate is too high. "The cost of an acre of land has also risen from more than 2,000 to more than 10,000, many growers do not want to plant."
Li Li pointed out that in recent years, the production of Chinese herbal medicines has decreased, while the processing costs of Chinese medicine tablets factory and the cost of labor and transportation are increasing.
In addition, many industry insiders pointed out that lobbying is the main driver of the current round of high prices of Chinese herbal medicines. Li Li also introduced, in general, Chinese herbal medicine prices are cyclical, individual varieties of price increases are more common. But this year, the dosage of maitake, Codonopsis pilosula, astragalus, Sichuan shellfish are rising, the unit price of Cordyceps is high than the same period last year also rose 30%. According to rough statistics, more than 300 commonly used varieties of Chinese herbal medicines, there are 200 have different ranges of increase.
The Chinese Medicine Association of breeding Specialized Committee Deputy Secretary General Jia Haibin was interviewed, from the second half of 2020, the domestic price of Chinese herbal medicines began to enter a sustained upward channel, the magnitude of the rise, the long cycle of rise, in the history of Chinese herbal medicines commodities recorded in the data is extremely rare. Jia Haibin said that in three years, the price of many varieties such as Shayuanzi, keel bone, Guan Huangbai, sour jujube nut, etc. doubled. "Whether it is the planting area or the weather, there is data available, are within the normal range. The current round of Chinese herbal medicine price increase is not normal."
"It is the capital into the field of stockpiling speculation, like speculation in the stock market." A many years in Gansu, Qinghai, Henan and other origin of traditional Chinese medicine receipt of goods dealers revealed that, just like more than ten years ago speculation in panax ginseng, this time many capital to choose the origin of a relatively centralized, more commonly used a few flavors of Chinese herbs, such as angelica, ginseng, astragalus, etc.: "The speculation is to give the money does not pick up the goods, but only in the various frozen storage warehouses between the speculation to speculate around. "
According to the president of the Yuzhou City Chamber of Pharmacy, this year, when he went to the origin of the medicine, he found more than a lot of new faces, many of them are real estate bosses or coal bosses, who acquired the herbs are hoarded, low into the high and high out. "In April this year, I went to Shanxi to purchase herbs, coincidentally met a coal boss is also purchasing. A single species of Chaihu, he bought hundreds of tons."
Bozhou, Anhui is the country's largest base for the storage of Chinese herbal medicines, the reporter to wholesaler inventory for the reason of randomly consulting Bozhou a few freezers whether there is still room to store herbs, a number of cold storage staff said there is no empty space. "Cold storage is basically all herbs, less out of the warehouse, storage prices have nearly doubled."
"At present, the market can clearly see the existence of the phenomenon of price gouging of Chinese herbs." After a comprehensive analysis, Liu Xu believes that in addition to the weather and other reasons, most of the reason is that there are wholesalers in the joint hoarding - because a single wholesaler's acquisition capacity, storage capacity, sales capacity is limited, once a large wholesaler to take the lead in multiple categories to release the inventory, the whole price can come down. But now the situation is, from the beginning of the year to date, Chinese herbs continue to rise, running high, "no collusion between wholesalers, it is very difficult to realize". To this end, Liu Xu has repeatedly said, "It is recommended to investigate whether there is hoarding and speculation behind the rise in prices of Chinese herbal medicines over the years, collusion pricing behavior."
Industry out to curb
Chinese medicine association called for the prohibition of price gouging, to carry out the "Chinese medicine production and marketing consortium action".
Domestic pharmaceutical associations have also spoken out one after another. Into June, Jiangsu Provincial Pharmaceutical Industry Association of Chinese medicine tablets professional committee, Guangdong Provincial Pharmaceutical Industry Association, Bozhou City, Chinese medicine tablets industry promotion, has submitted to the Chinese Association of Chinese medicine "on the Chinese herbal medicine market price anomalous growth in the situation report", that there is a social capital or dealers teamed up with manipulation of stockpiling of medicinal materials, low into the high, resulting in the price of Chinese medicinal materials, the price of Chinese herbal medicine appeared to be anomalous soaring.
On June 22, China Association of Traditional Chinese Medicines reported to the State Administration of Traditional Chinese Medicine (SACM) the "Research Report of China Association of Traditional Chinese Medicines on the Recent Abnormal Price Increase of Chinese Herbal Medicines", calling on the relevant state departments to introduce policies and take strong measures to maintain the stability of the market price of Chinese herbal medicines and safeguard the healthy, orderly and high-quality development of the traditional Chinese medicine industry.
July 8, China Association of Traditional Chinese Medicine again to the units issued an initiative letter, said the recent market conditions of Chinese herbal medicines continue to abnormal fluctuations, resolutely opposed to, and will never be involved in any form of inflating and manipulating the price of medicinal herbs, speculation and other improper and even illegal behaviors that disrupt the order of the market of medicinal herbs.
July 11, Shandong Internet Chinese medicine (herbs) trading center issued "on the promotion of Chinese herbal medicine, tablets," direct supply and marketing "to curb unreasonable price increases in the initiative," said a portion of the herbs were taken on a heavy financial attributes, the healthy development of the industry has been seriously impacted. Behind this round of persistent price increases, the reason in addition to some varieties of supply and demand imbalance, weather-related production cuts, drug standards, etc., in addition to hoarders wantonly speculation, further exacerbating the imbalance between supply and demand. Shandong Internet Chinese medicine (herbs) trading center decided to start to protect the Chinese herbal medicines, drinking tablets direct supply and direct sale of "Chinese medicine production and marketing consortium action".
Chinese medicine regulatory system is facing challenges
Experts recommend public investigation
Cao Haibin, deputy secretary-general of the Specialized Committee of the Chinese Medicine Association of breeding, the price increase in the current regulatory system of Chinese medicine is undoubtedly a challenge. The reasons for this round of soaring prices of Chinese herbal medicines is extremely complex, it is urgent to improve the top structure, reconstructing the pattern of industrial interests.
Liu Xu believes that the relevant departments can investigate malicious speculation and hoarding behavior based on the price law and anti-monopoly law. "If there is conspiracy, information interaction, and synergy between Chinese herbal medicine wholesalers, which is equivalent to a monopoly agreement, anti-monopoly law should be applied to regulate. If it is an autonomous decision, then the application of the price law can also be considered. Because the price law applies to all the inflated behavior and hoarding, the two laws can be said to be complementary."
Liu Xu introduced, Chinese herbal medicine due to the origin and market is more decentralized, and long belong to the state of free competition, by the attention is not enough. But this year's rise has not only appeared in a piece, Anhui, Gansu, Henan, Chongqing and even nationwide has been more than 100 kinds of Chinese herbal medicine price increases. "In the view of anti-monopoly law enforcement, even if 100 kinds of Chinese herbal medicine in one because of hoarding price increases, that is also the penalty on the penalty." Liu Xu said.
Liu Xu pointed out that, in general, the law enforcement agency's public statement of concern or organization of admonition, all kinds of price manipulation in the market will play a deterrent role. But to help the Chinese herbal medicine industry to restore normal market competition, must be timely and decisive public case investigation, according to the law to severely punish monopoly behavior and price violations and confiscate the illegal income, in order to set an example for others. Only when drug prices are stable and supply is adequate will it be conducive to the formation of reasonable expectations by growers, wholesalers, Chinese herbal medicine enterprises and medical enterprises in the industry chain, and the Chinese herbal medicine industry will be able to realize long-term healthy development.
A positive signal is that the China Association of Traditional Chinese Medicines has recently indicated that the Association is cooperating with the competent authorities to carry out investigative work on the price issue.
