The recent increase in price of onions as a result of a shortage in supply of the commodity will be normalised in a few weeks.
A media release from the Ministry of External Trade, Co-operatives and SMEs yesterday as a result of a challenging growing season in New Zealand – supermarkets in Fiji had consequently experienced shortage of supply of onions.
It said since September 2022, New Zealand had announced continuous increase in the cost of food products, compounded by a high demand for fruits and agricultural goods alongside influence of unfavourable weather, pressure from worldwide shortages, growing cost of production fertiliser and packaging, which have contributed to the unfavourable situation.
“It is important to acknowledge that the prices of basic food items are regulated by sections 44 and 51 of the FCCC Act 2010 and the Fijian Competition and Consumer Commission (Price Control) (Food Item Prices) Order 2021,” said the Deputy Prime Minister and Minister for External Trade, Co-operatives and SMEs, Manoa Kamikamica.
According to the ministry several traders in Fiji had imported onions from the United States throughout the holiday season to fulfil local demand, incurring additional freight costs – inevitably reaching consumers through hiked prices in shops and supermarkets.
It said the Government was working closely with the New Zealand Commerce Commission to monitor the situation in order to determine the most effective solution to the shortfall.
In the meantime, the ministry stated it was taking all proactive measures to mitigate the impact felt by consumers – collaborating with the FCCC and the council to ensure traders do not violate consumer protection provisions outlined in the FCCC Act of 2010 – especially in regards to overcharging.
It also said the new Government would start exploring diversification of sources of key commodities such as onions, where possible in the medium term.
