Government and retailer initiatives aim to ease cost of living pressures by managing fresh produce prices
The price of fresh produce is being locked in and reduced by governments and retailers across Asia ahead of Lunar New Year in response to cost of living pressures.
Demand for fruit, vegetables and other food products typically increases in the lead-up to celebrations and action is being taken in a number of Asian markets in a bid to ease economic stress.
According to a report from Yonhap News Agency, the Korean government will spend a record W84bn (US$63.52m) to provide increased discount coupons for farm, livestock and fisheries goods. The government will also put together a team to investigate pricing and supply of major high-demand goods and release reserved stocks of vegetables.
“The prices of apples, pears and other items remain high as their production is not sufficient due to weather conditions and other issues,” a ministry official told Yonhap News Agency. “The government aims to keep any increase in prices at the single-digit level and will enhance monitoring in cooperation with private entities.”
In Singapore, leading retailer FairPrice Group (FPG) will run a promotion for selected vegetables for the Lunar New Year period. The promotion runs alongside a series of measures, including a price freeze on seafood products, GST absorption and CDC return vouchers to help lessen the strain on household budgets.
The impact of inflation and the increase in GST from 8 per cent to 9 per cent in Singapore has added to the challenges that consumers are facing with affording daily necessities.
FPG chief executive, Vipul Chawla said: “Chinese New Year holds immense significance for customers across Singapore and we are mindful of the challenges that families may be facing. At the same time, higher demand for produce during the festive period inevitably drives prices up, and our price freeze is aimed at helping customers alleviate this pressure.”
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