Shortage of vegetables expected to boost prices

Vegetable are expected to rise between 10 percent and 30 percent this week as heavy rains over the past few days has battered farm produce, retailers said yesterday.

"The supply of vegetables is very likely to fall short of demand this week because of agricultural losses over the weekend, as well as panic buying among consumers," said Millie Chin (金柏伶), a deputy manager of Wellcome (頂好), one of Taiwan's major supermarket chains.

As of 4pm yesterday, the damage to the agricultural sector caused by torrential rains that began last Tuesday had reached NT$143.2 million, including 4,655 hectares -- or 23 percent -- of vegetable crops, according to a statement released by the Council of Agriculture yesterday. Vegetable crops in Changhwa and Yunlin counties reported the gravest damage, it said.

The losses were not reflected in the retail prices of vegetables and fruits yesterday, as retailers had begun selling their previous stock over the weekend, Chin said, adding that the level of price increases will depend on wholesale prices quoted when they replenish stocks today.

"Judging by previous experience, I think vegetable prices will go up by 10 percent to 30 percent," Chin said.

Panic by consumers was seen in hypermarkets over the weekend, said Jurene Hsiao (蕭安雯), public relations manager of Carrefour Corp Taiwan (家樂福). Hsiao said crowds flooded into every branch of Carrefour over the weekend on the expectation that prices would go up. The situation may continue as the weather forecast indicates that another wave of torrential rains will hit Taiwan tomorrow.

Although they expect prices to surge, Carrefour will try to absorb the costs and provide affordable rates to consumers, Hsiao said.

To maintain supply and price stability, the council said it is seeking to transport more vegetables from farms that were less affected by the rains. The council will also release more frozen vegetable stock, the statement said.