Why are mandarin orange prices rising by up to 40 per cent?

Question

Accepted Answer

Mandarin Orange Prices Surge Up To 40 Per Cent Due To Supply Shortages

Mandarin orange prices have seen a significant increase, with some traders reporting hikes of up to 40 per cent, primarily driven by a substantial supply shortage originating from China. The current cost of a box of oranges now ranges between RM10 and RM21.80, reflecting the diminished availability in the Chinese market, which is the main source for these festive fruits.
Limited Stock in China Drives Price Increases

The primary reason for the escalating prices of mandarin oranges is the limited stock available in China, according to traders. Lau Choon Yong, a trader, stated that this scarcity directly translates into higher costs, forcing a price increase of between 20 and 40 per cent. Despite customer grumbling over the elevated prices, the necessity of the fruit for Chinese New Year celebrations means consumers largely have no alternative but to purchase, albeit in smaller quantities this year.
Reduced Orders and Expected Sales Patterns

The impact of these price hikes is evident in reduced consumer purchasing. One fruit trader noted a 15 per cent drop in orders this year, particularly from corporate clients such as banks, who typically place their orders well in advance. These corporate customers are reportedly operating with tighter budgets this year, contributing to the overall decrease in demand for what is usually a popular festive item.
Additional Factors Contributing to Cost Hikes

Beyond the direct supply issues from China, other economic factors are also contributing to the increased cost of mandarin oranges. In Penang, for instance, Sin Lee Fruits Wholesaler manager Tan Aik Lee indicated an average price increase of 20 per cent. This rise is partly attributed to the strength of the US dollar against the Malaysian ringgit, as well as increased transport costs, further compounding the financial pressure on both traders and consumers. Traders like Ng Kok Leong anticipate a potential uptick in sales closer to the festive period as consumers make last-minute purchases, though he expressed doubt about offering discounts this year due to the persistent limited supply.

Reading history

Hide →

This history is cleared when the page is closed.

Why are mandarin orange prices rising by up to 40 per cent?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends