Navel Orange Price Index Launched In Chongqing
Op/Ed by Chris Devonshire-Ellis
Concerned that mass consumption of Oranges during December 24th as Santa Claus travels the world leaving presents, toys and oranges as gifts for young children around the world might impact on global orange prices, the Government of Fengjie County, in China’s Chongqing municipality have launched the worlds first Orange stock price index, enabling orange producers to trade futures and options in orange stocks.
The price index was compiled jointly by the Information Center of the Ministry of Agriculture and Rural Affairs, the China Economic Information Service (CEIS) of Xinhua News Agency, and the People’s Government of Fengjie County.
It aims to reflect changes in the supply and demand of navel oranges in Fengjie, quantify the level of navel orange industrial development, unblock market circulation channels, and provide weather vanes for planting planning, policy guidance, and trade decisions, including, the Fengjie Government claim, fruits and others consumables traded along the Belt & Road Initiative. It is something of a homecoming for the Orange, which originated in Ancient China. The earliest mention of the orange was in Chinese literature in 314 BC.
“The navel orange price index will help achieve standardization and digitization of the navel orange production, packaging, and transportation industry chain,” said Cai Ping, deputy director of the Information Center of the Ministry of Agriculture and Rural Affairs.
Fengjie Officials At The Opening Of The Worlds First Orange Price Index
Fengjie County is a famous citrus producing area in China. In 2019, the county’s navel orange plantation area is 354,800 mu (15 mu equal one hectare), with an annual output of 330,000 metric tons (tonnes).
In recent years, Fengjie County has taken measures to enhance quality of the navel orange industry. The brand value of Fengjie navel oranges has reached 18.28 billion Yuan, about US$2.6 billion.
Short sellers are on the prowl though. Due to concentrated supplies of the citrus throughout the country, the national wholesale price of navel oranges has fallen by 8.67 percent in the past month. The price index is expected to continue its downward trend in the short term. Help Fengjie! Eat more Oranges over the festive season.
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