Vegetable prices up in rain-soaked Malaysia

Hazlin Hassan, Straits Times 29 Dec 07;

KUALA LUMPUR - THE heavy rains that flooded parts of Malaysia may have subsided, but the bad news remains - prices of vegetables are likely to stay high in the run-up to Chinese New Year.

The reasons: increased demand, along with a drop in supply due to bad weather and flooding.

While floodwaters in the main vegetable-producing states of Johor and Pahang have gone down, Mr Chay Ee Mong, secretary-general of the Federation of Malaysian Vegetable Growers Association, told The Straits Times that prices are not expected to follow suit.

'This is based on weather forecasts which predict another wave of heavy rains,' he said.

Meteorological officials expect more rain to pound the north-eastern Malaysian states during the monsoon season, which occurs between November and February every year.

Mr Chay added that farmers also have to factor in recent increases in the cost of chemical fertilisers, pesticides and seeds into their prices.

Prices of vegetables are now between 40 per cent and 50 per cent higher than normal, said Mr Chay. In addition, production has dropped about 20 per cent.

Previously, round cabbages were sold at RM1.20 (50 Singapore cents) per kg, but they now cost RM1.70 per kg, said Mr Chay.

And leafy vegetables such as spinach now cost RM3 per kg, compared with RM2.20 previously.

But the Malaysian government said the raised prices are temporary.

Deputy Minister for Domestic Trade and Consumer Affairs S. Veerasingam said: 'Supply is still sufficient. If not, then we will take measures, including importing from China and Indonesia or other suitable countries.'

In Singapore, vegetable prices are coming down.

At the peak of the price surge, which occurred during the worst of the Malaysian floods in mid-December, prices went up by almost 50 per cent. The cost of kailan, for instance, rose from $1 per kg to up to $1.40. The current price is about $1.20.

Prices should return to normal in about a week, said Mr Tay Khiam Back, president of the Fruits and Vegetables Importers and Exporters Association in Singapore.

'There are five main vegetables affected, including kangkong, spinach and xiao bai cai,' he told The Straits Times.

'But these leafy vegetables also mature fast...it takes at most two to three weeks to grow and harvest, so although production is affected now, this can be recovered quite rapidly.'

According to Singapore's Agri-Food and Veterinary Authority, Malaysia usually supplies the Republic with 300 tonnes of vegetables each day.

While there has been a recent drop of about a quarter of this amount, much of the impact has been buffered because stocks are flowing in from local farms and other countries such as China, Thailand, Australia and Indonesia.

hazlinh@sph.com.sg

ADDITIONAL INFORMATION FROM TARA TAN, REUTERS