VEGETABLE prices could come down as the ringgit strengthens against the US dollar, thus bringing down the price of imported produce, said traders.

The ringgit, which lost close to 20% of its value since 2015, hit the psychologically important mark of 4.00 to the US dollar on Friday.

Although the country grows vegetables in Cameron Highlands, central Pahang and Johor, these farms do not produce enough to meet local demand.

Statistics by the Federal Agricultural Marketing Authority (Fama) showed that the country imported 2.2 million tonnes of vegetables and fruits in 2014.

To meet local demand, vegetables and fruits are imported from China, India and Australia.   

Vegetable seller Mohd Firdaus Ahmad Fauzi expects prices to improve if the ringgit strengthens against the greenback.  

“I think it will help if the ringgit does better. Things will be better,” said the 21-year-old who has been selling vegetables for the past five years at the Bayan Baru wet market.

“Prices have generally gone up. Bunga kantan is expensive, red chillies have gone up to RM18 or RM19. It used to be RM12 to RM13 per kg.”

A The Malaysian Insight survey of prices of select vegetables at four areas in the country showed that prices were low at more than half of the supermarkets in the study despite the monsoon season.

However wet markets in Kota Kinabalu, Kuching, Penang and the Klang Valley were higher than the average price in September 2017, before the rainy season started.

The Malaysian Insight looked at the prices of ikan kembung, chicken, cabbage, carrots, tomatoes and spinach at four wet markets between January 4 and 5.

The prices were compared with the Statistics Department’s own list of prices in September 2017, before the start of the monsoon season. 

The survey was carried out at four wet markets in Penang, Klang Valley, Kuching and Kota Kinabalu. Eleven hypermarkets in those areas, four in the Klang Valley, three each in Kuching and Penang, one in Kota Kinabalu were also included. 

Cheaper imports

According to the department’s measurement for inflation, the consumer price index (CPI), showed that the price of vegetables increased by 3.2% in November 2017.

In The Malaysian Insight survey, the prices of cabbages, carrots and tomatoes were lower than the September average at hypermarkets in the Klang Valley and in Kota Kinabalu.

The prices of these produce were higher in several hypermarkets in Kuching compared with September 2017.

Tomatoes and carrots were the two vegetables that recorded lower prices compared with September 2017 in most of the markets in all four areas.

Kota Sentosa vegetable seller Ah Ming said cabbages, carrots and tomatoes were all imported either from overseas or from the peninsula.

He echoed the sentiments of Firdaus of Penang, attributing the high price of vegetables to a weak ringgit.

Prices are also high during the rainy season which interrupts supplies from farms in the peninsula.

Another vegetable seller Azman in Shah Alam said some local produce, such as long beans and brinjals, were more expensive than imported ones.

He cautioned against thinking that prices will come down just because the ringgit has strengthened.

“What I know is once the prices have gone up, it’s very hard to come down. The increases are also not little. For local veggies, the increase can be between RM3 and RM4,” said the 38-year-old who has been in business since 1989. – January 8, 2018.