Two days after the outbreak of war in Iraq, the Fair Trade Commission said it is paying close attention to rumors of hoarding and profiteering by grain importers.
"We have been closely watching the situation for more than a month to prevent hoarding or any abnormal price fluctuations," council Vice Chairperson Chen Chi-yuan (
"This morning, in particular, we sent 16 people to check prices of corn, soybean, barley and wheat in the markets," he said.
The commission also talked with importers and distributors to gain further knowledge of market developments.
"We found no substantial price changes so far," he said.
But the council has set up a contingency task force which will regularly inspect the market situation until the war ends.
The council warned importers not to make any unnecessary price-hikes because it is against the law.
Companies that engage in hoarding and profiteering can be fined between NT$50,000 and NT$25 million, Chen said.
In Taiwan, except for rice -- which is mainly imported by the government or state-run businesses -- other agriculture products are purchased by food processors such as Uni-President Enterprises Corp (統一企業) and Chia Hsin Food & Synthetic Fiber Co (嘉新食化).
If the war is brief, then the impact on grain importers is likely to be minimal.
But if the US-led invasion of Iraq drags on, it will increase purchasing costs for importers, said Chen Chao-yang (陳朝陽), secretary-general of Taiwan Confectionery, Biscuit and Floury Food Association (糖果餅乾公會).
Chen Wen-heng (
"But our transportation costs have increased by 10 percent so far," he said.
He said that most of its shippers are on schedule from the US West Coast -- with about 10 shipments per week.
Should the situation become worse, Chen Chao-yang suggests the government adjust importation tariffs for grains and, if necessary, allow the private sector to purchase supplies from China as part of a broader effort to provide emergency supplies.
A Council of Agriculture official, surnamed Liu, said yesterday that the council is mulling the possibility of purchasing grain from China. However, the official declined to elaborate further.
To ensure public confidence, the Cabinet said on Thursday that major commodities are in ample supply and that rice stocks are sufficient for seven months.
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