In July, the trade of Chinese herbal medicines should have entered the off-season, but this year, the price has remained high since the beginning of the year.
In addition to the natural climate and other factors, many people in the industry pointed out that the intervention of hot money is the main reason to promote the current round of high prices of Chinese herbal medicines. Lily li, Secretary-General of Chinese Herbal Pieces Branch of Sichuan Pharmaceutical Industry Association, said that generally speaking, the price increase of Chinese herbal medicines is cyclical, and the price increase of individual varieties is more common. But this year, Ophiopogon japonicus, Codonopsis pilosula and Bulbus Fritillariae Cirrhosae, which are widely used in traditional Chinese medicine, are on the rise, and Cordyceps sinensis, which has a high unit price, has also increased by 30% compared with the same period last year. According to his rough statistics, among more than 300 commonly used varieties of Chinese herbal medicines, 200 have different increases.
"At present, it is obvious in the market that Chinese herbal medicines are driving up prices." Liu Xu, a special researcher of Tsinghua University National Institute of Strategic Studies, told the Chengdu Business Daily-Red Star journalist that relevant departments can investigate some malicious speculation and hoarding according to the price law and anti-monopoly law.
"I haven’t seen this kind of increase in 40 years."
More than 200 medicinal materials have increased by more than 50%, and some drug dealers have lost money to deliver.
Under the influence of high temperature and rain, June and July are generally regarded as the off-season of Chinese herbal medicine trading in the industry. However, this year, the prices of various Chinese herbal medicines have remained high since the beginning of the year. "Commonly used large varieties of medicinal materials are on the rise, and local angelica has risen from one kilogram in 60 yuan to one kilogram in 200 yuan; One kilogram of codonopsis pilosula in 80 yuan has now risen to 220 yuan, and Shayuanzi has increased tenfold. " An old Chinese doctor in the Southwest Chinese Medicine Clinic lamented: "It’s not normal. I have never seen this kind of increase in Chinese medicine for 40 years."
The business of the Chinese herbal medicine market has also been affected. In Qingping Chinese herbal medicine wholesale market, the price of Angelica sinensis has risen to 300 yuan per kilogram. Mr. Li of Qingping Market Medicinal Materials Company told Chengdu Business Daily-Red Star News reporter that since the price increase, the business has also become weak. According to Mr. Li’s estimation, the wholesale volume of angelica in the store has fallen by more than half.
From the origin and storage base of Chinese herbal medicines, to the wholesale market, and then to the whole industrial chain of Chinese herbal medicines entering hospitals and clinics, the impact of rising prices has been felt, and even some pharmaceutical companies that signed procurement contracts at the beginning of the year need to deliver at a loss. The person in charge of the pharmaceutical industry of a Chinese herbal medicine factory engaged in export business introduced that the Chinese herbal medicine factory generally measures the scale of procurement and production through customer orders. At the beginning of the year, after the factory prepared the annual consumption of about 20 tons of angelica for customers according to the practice of previous years, I didn’t expect to catch up with the price increase of angelica. Now there is still a gap of 5% to 10% of angelica in the factory. In order to deliver on time, the factory considers buying raw materials such as angelica at a high price. "A better decoction piece factory can only make a little profit, and some factories have to deliver when they lose money."
China association of traditional chinese medicine reported in June that in Bozhou, Anguo, Yulin and other major trading markets, more than 200 conventional varieties increased by more than 50% annually, 100 conventional varieties increased by more than 100% annually, and 25 commonly used bulk medicinal materials increased by more than 200% annually. The reporter checked the Chinese herbal medicine market of Chinese herbal medicine Tiandi. com and found that the prices of common Chinese herbal medicines such as Angelica sinensis, Bupleurum, Codonopsis pilosula, Glycyrrhiza uralensis, Astragalus complanatus, Paeonia lactiflora, Atractylodes macrocephala and Forsythia were among the top gainers.
On July 12th, lily li, Secretary-General of Chinese Herbal Pieces Branch of Sichuan Pharmaceutical Industry Association, also told reporters that generally speaking, wholesale channels (such as Chinese herbal medicine purchasing terminal and Chinese herbal pieces factory) are the first to feel the price increase of Chinese herbal medicines. "The most fierce rise is the unified angelica, which has probably increased by 260% so far."
Who is the "initiator"
People in the industry call the influx of hot money speculation, "like stock speculation."
What is the reason for the price increase of Chinese herbal medicines? According to lily li, from the analysis of natural climate, reducing production is one of the reasons leading to the price increase. Affected by high temperature and other factors, the bolting rate of Angelica sinensis is high, and the leaves are long and the roots are not long, which affects the quality and yield of the effective parts of the roots. After the planting cost increases, growers switch to other Chinese herbal medicines, resulting in reduced production.
A Chinese herbal medicine dealer in Min County, Gansu Province, the main producing area of Angelica sinensis, also told reporters that when the market was good, the yield of Angelica sinensis per mu was 400 kg/mu, compared with only a few tens of kg last year, because the bolting rate of Angelica sinensis seedlings was too high. "The cost of an acre of land has also risen from more than 2,000 to more than 10,000, and many growers don’t want to plant it."
Lily li pointed out that in recent years, the output of Chinese herbal medicines has decreased, while the processing cost and manpower transportation cost of Chinese herbal pieces factory are increasing.
In addition, many people in the industry pointed out that hot money is the main driver of the current round of high prices of Chinese herbal medicines. Lily li also introduced that, generally speaking, the price increase of Chinese herbal medicines is cyclical, and the price increase of individual varieties is more common. But this year, the consumption of Ophiopogon japonicus, Codonopsis pilosula, Astragalus membranaceus and Fritillaria cirrhosa is increasing, and Cordyceps sinensis, which has a high unit price, has also increased by 30% compared with the same period last year. According to rough statistics, among more than 300 commonly used varieties of Chinese herbal medicines, 200 have different increases.
Jia Haibin, Deputy Secretary-General of the Special Committee for Breeding of Chinese Medicine Association, said in an interview that since the second half of 2020, the domestic prices of Chinese herbal medicines have started to enter a continuous rising channel, with a large increase and a long rising cycle, which is extremely rare in the history of Chinese herbal medicines with data records. Jia Haibin said that in the past three years, the prices of many varieties such as Shayuanzi, Longgu, Guanhuangbai and Ziziphus jujuba have doubled. "Whether it is the planting area or the weather, there are data to check, which are within the normal range. The price increase of Chinese herbal medicines in this round is not normal. "
"It’s the funds that enter the market to stock up and speculate, which is as high as stock trading." A dealer who has been receiving goods in Gansu, Qinghai, Henan and other traditional Chinese medicines for many years revealed that, just like the speculation of Sanqi more than a decade ago, many capitals chose several traditional Chinese medicines with relatively concentrated production areas, such as Angelica sinensis, Codonopsis pilosula, Astragalus membranaceus, etc.: "The way of speculation is to give money without picking up the goods, but only to speculate among various frozen warehouses."
According to the president of Yuzhou Pharmaceutical Chamber of Commerce, when he went to the country of origin to get medicine this year, he found many unfamiliar faces, many of whom were real estate bosses or coal bosses. After purchasing medicinal materials, they all hoarded them, and the lower they went, the higher they went. "In April this year, I went to Shanxi to purchase medicinal materials, and I happened to meet a coal boss who was also purchasing. He bought hundreds of tons of a variety of Bupleurum. "
Bozhou, Anhui Province is the base with the largest storage capacity of Chinese herbal medicines in China. When the reporter randomly asked whether there were any remaining medicinal materials in several freezers in Bozhou on the grounds of wholesaler’s inventory, many cold storage staff said that there were no vacancies. "The cold storage is basically medicinal materials, and there are fewer warehouses, and the storage price has nearly doubled."
"At present, it is obvious in the market that Chinese herbal medicines are driving up prices." After comprehensive analysis, Liu Xu thinks that apart from weather and other reasons, most of the reasons are that wholesalers are jointly hoarding — — Because the purchasing ability, storage ability and sales ability of a single wholesaler are limited, once a large wholesaler takes the lead in releasing inventory in multiple categories, the whole price can come down. However, the current situation is that Chinese herbal medicines have continued to rise and run at a high level since the beginning of the year. "Without collusion between wholesalers, it is difficult to achieve." To this end, Liu Xu has repeatedly said, "It is suggested to investigate whether there is hoarding speculation and conspiracy to price behind the rising prices of Chinese herbal medicines year after year."
Industry moves to contain
The Chinese Medicine Association called for the prohibition of price gouging and the launch of the "Chinese Medicine Production and Marketing Consortium Action"
Major medical associations in China have also voiced their voices. Since June, the Professional Committee of Chinese Herbal Pieces of Jiangsu Pharmaceutical Industry Association, Guangdong Pharmaceutical Industry Association and Bozhou Chinese Herbal Pieces Industry Promotion Association have submitted the Report on Abnormal Market Price Growth of Chinese Herbal Medicines to china association of traditional chinese medicine successively, arguing that there are social hot money or dealers who jointly hoard Chinese herbal medicines, and the prices of Chinese herbal medicines have soared abnormally.
On June 22nd, china association of traditional chinese medicine reported to state administration of traditional chinese medicine the "Investigation Report of china association of traditional chinese medicine on the Recent Abnormal Price Rise of Chinese Herbal Medicines", calling on relevant state departments to issue policies and take effective measures to maintain the market price stability of Chinese herbal medicines and ensure the healthy, orderly and high-quality development of the Chinese medicine industry.
On July 8, china association of traditional chinese medicine once again issued a proposal to all units, saying that the market of Chinese herbal medicines has been fluctuating abnormally recently, and resolutely opposed and never participated in any improper or even illegal acts that disrupted the market order of Chinese herbal medicines, such as price gouging and manipulation, speculation and speculation.
On July 11th, Shandong Internet Traditional Chinese Medicine (Materials) Trading Center issued the "Initiative on Promoting Direct Supply and Direct Sale of Chinese Herbal Medicines and Pieces and Curbing Unreasonable Price Increase", saying that some medicinal materials have been brought with strong financial attributes, and the healthy development of the industry has been seriously impacted. Behind this round of sustained price increase, the reasons are not only the imbalance between supply and demand of some varieties, the reduction of production due to weather, and the improvement of drug standards, but also the wanton speculation of hoarders, which further aggravates the imbalance between supply and demand. Shandong Internet Chinese Medicine (Materials) Trading Center decided to launch the "Chinese Medicine Production and Marketing Consortium Action" to ensure the direct supply of Chinese herbal medicines and pieces.
The regulatory system of traditional Chinese medicine faces challenges
Experts suggest public investigation.
According to Cao Haibin, deputy secretary-general of the Special Committee of Breeding and Breeding of Chinese Medicine Association, this price increase is undoubtedly a challenge to the current Chinese medicine supervision system. The reasons for this round of soaring prices of Chinese herbal medicines are extremely complicated, and it is urgent to improve the top-level structure and reconstruct the industrial interest pattern.
Liu Xu believes that relevant departments can investigate malicious speculation and hoarding according to the price law and anti-monopoly law. "If there is collusion, information exchange and collaboration between wholesalers of Chinese herbal medicines, it is equivalent to a monopoly agreement, and the anti-monopoly law should be applied to regulate it. If it is independent decision-making, you can also consider applying the price method. Because the price law applies to all acts of arrogance and hoarding, the two laws can be said to be complementary. "
Liu Xu introduced that Chinese herbal medicines have not received enough attention because of their scattered origin and market and long-term free competition. However, this year’s rally has not only appeared in one area, but more than 100 kinds of Chinese herbal medicines have increased in price in Anhui, Gansu, Henan, Chongqing and even the whole country. "From the perspective of anti-monopoly law enforcement, even if one of the 100 Chinese herbal medicines is due to hoarding and price increase, it is also a punishment." Liu Xu said.
Liu Xu pointed out that, generally speaking, the public concern or organization warning of law enforcement agencies will have a deterrent effect on all kinds of price manipulation in the market. However, in order to help the Chinese herbal medicine industry to restore normal market competition, it is necessary to open a case for investigation in a timely and decisive manner, severely punish monopolistic behavior and price violations according to law, and confiscate illegal income, so as to make an example for others. Only with stable drug prices and sufficient supply can growers, wholesalers, Chinese herbal medicine enterprises and medical enterprises in the industrial chain form reasonable expectations, and the Chinese herbal medicine industry can achieve long-term healthy development.
A positive signal is that china association of traditional chinese medicine said recently that the Association is cooperating with the competent authorities to carry out an investigation on the price issue.