Chinese traditional medicine (TCM) prices have risen sharply since the first half of 2009, Beijing Times reported Monday.

This price surge will increase the production costs of TCM firms and hamper the development of the industry, said Fan Shuting, the director of the China Association of Traditional Chinese Medicine (CATCM), on June 19 at the China Bio-industry Convention 2011 (BioChina).

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He said Chinese traditional medicine prices have increased by 10 percent on average, with the highest rising 400 percent since the first quarter of this year. In addition, he said according to price investigation in April, the price of 399 of 577 types of traditional medicines had increased compared with the same period in 2010, especially varieties of wild herbal medicine.

"The price fluctuation is normal in a market economy but the sudden rise and fall of specific kinds of medicine is beyond the scope of the market. We have summited reports to the related national departments asking to deflate the rising prices and ensure ample supply," he added.

Fan also said the National Development and Reform Commission and CATCM will jointly set up a team to conduct investigations in the medicine market, production area and Chinese medicine firms.