FRUIT traders are forced to increase prices of imported produce because their costs have gone up by 30% due to the drop in the ringgit.

Kuala Lumpur Fruits Wholesalers’ Association president Chin Nyuk Moy said the market now is very poor and they are barely making any profits.

“Everything is expensive now and with the ringgit dropping so low it is costing us 30% more to import fruits,” she said, adding that the increase in the cost of logistics is also forcing them to hike prices.

“When we import, the currency affects us and once it lands in Malaysia, the logistics are expensive because petrol price is also high now.”

Last week, the ringgit fell to RM4.40 against the US dollar.

Former finance minister Tengku Razaleigh Hamzah said the government must pay urgent attention to the depreciating value of the country’s currency at the risk of it falling to RM5.50 against the US dollar by the end of this year.

The retail price of RON97 petrol went up by 37 sen to RM4.70 per litre, while the prices of RON95 and diesel remain unchanged up to June 1.

Chin said, due to the drop in the ringgit, traders are not importing as much as they used to.

“We can’t sell at a very high price as people won’t buy, so we have decided to import less.

“Previously, buyers could get eight for RM10, but now they can only get six,” she said.

Chin said sales have dropped nearly 20% in the past couple of months and warned if the ringgit does not stabilise any time soon, the situation can get worse,

“For instance, if the ringgit falls to RM4.80 to the US dollar, it will add another 10% to our cost price, which will make a total increase of 40%,” she said.

Grocers losing business

Kenny Lim, 52, grocer in Kluang, Johor, said sales have dropped nearly 20% the past couple months.

“When the wholesalers increase the price, we have no choice but to do the same, hence the number of customers drop.

“I hope the situation does not come to a point where fruits will be considered a luxury item,” said Lim.

He said his regular customers are not buying more than five fruits, when they used to buy more previously.

“Customers are very choosy now, only purchasing what they need more than what they want,” Lim said.

Another grocer Muhammad Saiful, 48, said he stopped taking most of the fruits.

“These days, I only take fruits that are popular, leaving out the rest as they may go to waste.

“Something has to be done to fix the ringgit immediately. Many fruit traders will close down if the situation does not improve,” Kuantan-based Muhammad said.

He added that revenues have dropped nearly 15%.

Customers thinking twice before buying

Food delivery rider Kishen Raj, 28, said these days, he thinks twice before buying fruits.

“The price hike may not be much, but it makes a big difference to me as I have a family of four to feed.

“If I used to buy five apples for RM8, these days, I will be lucky if I can get four for the same price.

“That is only apples we are talking about. I have stopped buying grapes because it is way over my budget,” Kishen said.

Christine Liew, 36, said she spends time comparing prices at various outlets before buying any fruit.

“I used to buy fruits near my house but now I will go to a few places to get the best bargains.

“Even if it is a ringgit or two cheaper, it still makes a big difference,” said Christine, who is a clerk.

On Saturday, Finance Minister Tengku Zafrul Tengku Abdul Aziz said strong economic fundamentals and prudent ringgit management are expected to contribute to the strengthening of the ringgit against the US dollar.

“The ringgit will continue to strengthen as the economy expands by 3.6% in the fourth quarter of 2021, and 5.0% in the first quarter of 2022,

“This is also reflected in the most recent IMF analysis, which projects 5.75% GDP growth for Malaysia in 2022, driven by pent-up domestic demand and continued strong external demand,” he said. – June 1, 2022.