Several Democratic Progressive Party (DPP) lawmakers yesterday urged the government to take measures to stabilize the cost of packaging materials made of petrochemical products and prevent hoarding, saying that the war in the Middle East has impacted Taiwanese farmers negatively.
Following the disruption of oil and gas supply chains by the war initiated by the US’ and Israel’s attack on Iran, plastic containers for farming produce have been in high demand, and some mid-level distributors have been hoarding such products, sending prices higher, lawmakers said at a news conference at the legislature in Taipei.
DPP legislators Lai Hui-yuan (賴惠員) of Tainan, Tsai Yi-yu (蔡易餘) of Chiayi, Liu Chien-kuo (劉建國) of Yunlin and Chen Su-yueh (陳素月) of Changhua attended the news conference.
Photo: George Tsorng, Taipei Times
The price volatility of petrochemical materials triggered by the war in the Middle East caused shortages and price hikes of plastic bags, containers and other materials used in packaging of farm produce, Tsai said.
Transparent boxes used for packaging pearl tomatoes are in short supply, with prices already increasing 15 percent, he said, adding that several farmers told him that some distributors hoard them to benefit from rising prices.
Lai called on the Ministry of Agriculture to coordinate with major wholesale centers to develop alternating packaging such as cardboard boxes for some fruits and vegetables.
The government must ensure that the supply of petrochemical materials is stable, and inspect distributors and retailers to fight hoarding, she said.
The ministry and officials should not be out of touch, only look up online figures and rely on “big data,” she said, urging them to “meet farmers and visit traditional markets” to observe the situation.
Agricultural Resources Division Deputy Director Jao Mei-chu (饒美菊) said that efforts have been made to stockpile agriculture fertilizers and that a subsidy mechanism for farmers that was used during the COVID-19 pandemic and through the war in Ukraine has remained in place.
“The ministry monitors raw materials’ international market prices weekly and absorbs a portion of the price increases, “ she said, adding that cooperation with the Ministry of Economic Affairs (MOEA) is needed to ensure the supply of plastic containers.
Efforts are under way to request major petrochemical suppliers to prioritize Taiwan’s domestic demands and needs of primary industries to minimize supply chain disruptions, Industrial Development Administration Deputy Director-General Lo Shih-fan (羅世藩) said.
Lo urged industry associations and upstream suppliers to monitor mid and lower-level buyers, and report abnormal purchasing patterns or suspected hoarding activities to the MOEA.
The MOEA has established a dedicated hotline at 02-2701-1669, extension lines from 105 to 107, for reporting hoarding and unfair pricing hikes, he added.
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