News & Articles Weaker ringgit causing vegetable prices to shoot up
Weaker ringgit causing vegetable prices to shoot up
11 Mar 2016
The current higher prices of vegetables and fruits are closely associated with the drop in the value of the ringgit, said Deputy Agriculture and Agro-based Industry Minister Datuk Seri Tajuddin Abdul Rahman.
He said the drop in the ringgit value had raised the farmers’ operating costs because imported fertiliser and agricultural equipment now cost up to 30% more.
Much of the fertiliser is imported and the currency used is the US dollar. With the drop in the value of the ringgit, the cost of the fertiliser has risen by between 20% and 30%.
He said the rise in the prices of local agricultural goods was also due to the distribution chain factor at various levels.
The ministry, through the Federal Agricultural Marketing Authority, always strived to minimise the distribution chain to contain price increases, he said.
One way was the introduction of the MyFarm Outlets which sold foodstuff at prices 5-20% lower than the market prices, he said.
The MyFarm Outlets were proposed under the Budget 2016 recalibration measures announced on Jan 28 by Prime Minister Datuk Seri Najib Razak.
He said the drop in the ringgit value had raised the farmers’ operating costs because imported fertiliser and agricultural equipment now cost up to 30% more.
Much of the fertiliser is imported and the currency used is the US dollar. With the drop in the value of the ringgit, the cost of the fertiliser has risen by between 20% and 30%.
He said the rise in the prices of local agricultural goods was also due to the distribution chain factor at various levels.
The ministry, through the Federal Agricultural Marketing Authority, always strived to minimise the distribution chain to contain price increases, he said.
One way was the introduction of the MyFarm Outlets which sold foodstuff at prices 5-20% lower than the market prices, he said.
The MyFarm Outlets were proposed under the Budget 2016 recalibration measures announced on Jan 28 by Prime Minister Datuk Seri Najib Razak.
Source: Therakyatpost.com