Herbridge,24 March 2010-Yunnan province is suffering the severest drought in a century with no rain since the last autumn.Which severely affects the cultivation and supply of pseudo-ginseng in China and thus brought chanllenge to drug manufacturers.

        Wenshan,Yunnan province is known as a land of pseudo-ginseng where the quality and output rank the top in China.According to statistics,the planting area and output account for almost 98 percent of the country's total pseudo-ginseng fields. According to Wenshan Pseudo-ginseng Sspecialty Office,the disaster area in Wenshan reached 56,746 mu,accounting for 94.5 percent of the total planting areas in Wenshan.The economic loss associated with the pseudo-ginseng farming hit 136.13 million yuan.The planting area reached 15,000 mu in the other seven pseudo-growing area,and 11,500 mu were affected.

        The Pseudo-ginseng harvest must be got in three years after planting.It is estimated that the drought would respectively affect around 20 percent and thirty percent of the output of the third-year-growing and the second-year-growing pseudo-ginseng.Industry insider predicted that the output of pseudo-ginseng was no more than 2,500 tons this year.If the drought would severely affect the seedlings if it continues.Which means the output of pseudo-ginseng will be extremely limited in 2012.

        The available stocks in the market are also limited.According to Wenshan Pseudo-ginseng Sspecialty Office,the total pseudo-ginseng fields had the first decrease in the past ten years,reaching 68700 mu compared to 10,000 mu in the past years.The total pseudo-ginseng output was 3,500-4,000 tons.The annual demand reached around 7,000 tons.The price therefore rose between September and October last year.

        The serious drought as well as market speculation resulted in the continually rising price.Industry insider said the second-class pseudo-ginseng(sixty to eighty ones a kilogram) price was expected to rise to over 500 RMB/kg and the third-class pseudo-ginseng(several ones a kilogram) price is forcast to be 400RMB/kg.

        The rising price brought cost pressure to manufacturers.The shortage affected their production schedule.ShenYangHongYao has increased the price for dealer.Which to some extent can relieve pressure.But if the price remains high and the stock is out,they will reschedule the production.Currently,many enterprise executives and dealers go to Wenshan on account of worrying the raw material.