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Slight dip in food prices in April
Jessica Lim
Sun, May 25, 2008
The Straits Times

THE drive to diversify Singapore's food sources seems to be paying off in the form of lower vegetable prices.

For those fed-up with news of incessant price increases, here's some cheer: Tomatoes, kangkong and spinach are cheaper, dropping by 11 to 13 per cent from March, according to the consumer price index (CPI) for April.

Price drops have been even bigger at some wet markets.

A check showed that tomatoes are going for 1.80 a kg, down from $2.50 in March. Spinach and kangkong went down from $2.50 per kg to $2 - and are still dropping.

Vegetable importers say this is due to two reasons: Diversification of sources and the short crop cycle.

Said Mr Tay Khiam Back, chairman of the Singapore Fruits and Vegetables Importers and Exporters Association: 'Vegetables grow fast, making supply flexible. All it takes is a month for supplies to meet a surge in demand.'

Another reason for the lower vegetable prices: importers have been casting their nets far and wide for new sources.

This brings prices down, Mr Tay explained, because importers can switch to another exporter easily if exports are stemmed.

Singapore imports vegetables from over 30 countries, including China and Malaysia.

Other food retailers are also looking to non-traditional producers in a bid to keep costs down.

Read the full story in Monday's edition of The Straits Times.

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