Dry spell could burn hole in consumers' pockets

Teo Xuanwei, Today Online 11 Mar 10;

SINGAPORE - Green, leafy vegetables like pak choy and kangkong may become slightly costlier in coming weeks if the recent dry spell does not go away, importers say.

But a greater concern is: Could the El Nino weather pattern, which has caused droughts in the fields in northern Thailand from where Singapore gets some 60 per cent of its rice supplies, lead to skyrocketing rice prices seen here in mid-2008?

Though the price of rice remains stable for now, importers warned the full effect of the blistering heatwave will only be seen after harvests next month.

This is because Singapore's current imports are from previous harvests, they said.

"It's still too early to say for now but if the conditions degenerate and lead to worse crop failures, prices will go up inevitably," said Mr Jimmy Soh, managing director of Chye Choon Foods.

Still, it is rather unlikely prices will spiral to the record US$1,278 a tonne seen in 2008, he added.

The price of Thai fragrant rice began inching upwards last November because of smaller harvests caused by the poor weather, a stronger Thai baht and greater demand worldwide.

For now, the more immediate impact of the drier-than-usual weather conditions has been on import prices of some vegetables, which have risen 20 to 30 per cent since last week. Harvests in countries like Malaysia and China suffered.

Said Mr Vincent Li, vice-president of the Singapore Fruits and Vegetables Importers and Exporters Association: "Dry weather affects us every year but this year is slightly worse. Consumers may see some minor price adjustments for a few kinds of vegetables next week."

A spokesperson for the Agri-Food and Veterinary Authority said the Republic has diversified its supply sources, which ensures "a resilient supply as it enables our traders to quickly switch to alternative sources and at the most competitive prices".