Press Digest - Rise in garlic prices due to a number of factors

THE price of garlic has sky-rocketed as a result of poorer harvest, raise in garlic farmers' wages, the deprecation of the ringgit and a greater demand.
According to a report in China Press today, the prices of shelled garlic are going for RM12 and above for a kg in the Klang Valley, more than double its prices of RM4-5 a kg two years ago.
Malaysian Foodstuff Import and Export Association president Datuk Seri Alex Chuah Poh Kiang pointed out that Malaysia imports 7,000 to 8,000 tonnes of garlic a month from China.
He said this is one reason why the goods are pricier now.
"We are 100% dependent on China for garlic import. And garlic, like our durians, is seasonal, i.e. it is harvested once a year, and can be stored for up to two years."
Chuah disclosed that at present, not only Asian countries are buying garlic from China: almost all the countries around the world are sourcing the flavoured vegetable from China.
A drop in production due to unfavourable weather and bigger demand by buyers worldwide have prompted garlic traders in China to jack up the prices, he said.
Asked if there is hoarding of the commodity, Chuah said this could be happening in China but not in Malaysia.
"Poorer harvest and greater demand aside, the drop in the value of ringgit, to as low as RM4.40 to the green back, is another factor (for the hike in garlic prices).
"Greater demand has provided opportunities for profiteering," he said, not discounting the possibility of speculative activities as another reason behind the high prices of garlic.
"We (suppliers) have no choice but to increase the prices accordingly. At present the wholesale price of garlic ranges between RM7 and RM11 a kg while the retail prices vary (according to areas)."
The daily also reported that the prices of local greens have also gone up by between 50% and 100% lately because of shortages and the higher prices of imported vegetables due to the weaker ringgit.