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Why the orange prices will rise during the Chinese New Year?
As a result of the shrinking supply of oranges due to poor harvest and stronger US dollar, the price of oranges may increase by 10 to 15 per cent.
The citrus fruit, a must-have during the festival, may cost up to 20 per cent more in the Year of the Rooster, due to decreased supply and a stronger American dollar, said local importers.
Furthermore, the Typhoon Megi, which hit Taiwan in September, and a January frost in China have caused a drop in supplies of oranges.
The fruit industry estimated that mandarin orange prices would increase by 10 to 15 per cent in general.
It is also stated by the suppliers that the stronger greenback was another factor that could drive prices up, because transactions for the fruit are done in US dollars.
Most of the time, Singapore suppliers imports mandarin oranges from mainland China, Taiwan, Pakistan, Japan and South Korea. Singapore has imported around 19,000 tonnes of mandarin oranges a year for the past three years.
Mainland China occupies three-fifths of imports over the past three years, according to data from the Agri-Food and Veterinary Authority. The Chinese province of Fujian supplies most of the mandarin oranges sold in Singapore.
Importers believe that fewer mandarin oranges may be sold this coming festive season.
One supplier said, “A worsening economy and the proximity of Chinese New Year to the Gregorian new year could dampen demand.”
Families would have to prepare for the new school year and on other types of expenditures and therefore may not be able to afford to buy oranges, as their buying power is weak.
However, people will still buy oranges even if prices increases. This is due to the belief that oranges bring luck to households.
On average, each carton of 48 oranges cost $22. For most consumers, an increase in price of not more than $10 would still be acceptable.
Adapted from a Straits Times article.
Question: Based on the views of the article, explain why the price of oranges will rise.