Mandarin orange prices in Malaysia have declined following the end of the 15-day Chinese New Year period, with traders clearing remaining stock at reduced prices.
According to estimates from wholesalers, more than 10,000 boxes remain in storage, equivalent to at least two shipping containers. Kuala Lumpur Fruits Wholesalers' Association president Chin Nyuk Moy said mandarins that were previously sold for about RM35 (US$7.40) per 4kg box are now selling for between RM5 and RM10 (US$1.06–2.11).
Some batches are being sold at even lower prices to clear inventory.
However, Chin said consumers purchasing fruit at very low prices may face quality risks.
"Before Chinese New Year, customers were usually allowed to open the box to check the quality of the oranges and get replacements for any spoiled fruit," she said.
She added that quality checks or replacements are unlikely when fruit is sold at clearance prices.
Chin said the market has seen an oversupply, particularly of Yongchun mandarins from China. She estimated that about two containers, or more than 10,000 boxes, remain in cold storage, while some wholesalers still hold several hundred boxes.
"We have asked the importers in Kuala Lumpur and southern Malaysia. The unsold stock could total around 20,000 boxes, although the exact figure is difficult to determine," she said.
Not all importers have the same situation, according to Chin, as some continue to supply regular clients.
She also noted that demand for mandarin oranges declined slightly this year.
"Previously, people would buy mandarin oranges by the box when they visited relatives during the festive season. But now, they purchase only a few oranges or smaller gift packs containing 10 fruits," she said.
Importer Tee Liang Kwok said some shipments initially destined for Indonesia and the Philippines were redirected to Malaysia this year. He explained that during Ramadan, demand in Indonesia typically declines, which reduces imports there.
Tee said the overall volume of leftover fruit is limited as importers and traders have already been clearing stock at lower prices.
"Some batches have been discarded while others are being sold cheaply at about RM3 to RM5 (US$0.63–1.06) per 4kg box to clear the remaining stock," he said.
According to Tee, a container typically carries about 25 tons of mandarins.
Given this year's market situation, he said importers are expected to be more cautious with their orders next year.
A trader identified only as Lim said sales were slower this season as consumers purchased smaller volumes.
"In previous years, we would be able to sell off the oranges during the Chinese New Year period. But this time, I had 100 boxes left," he said.
Lim said he eventually cleared the remaining stock by offering a "buy-one-free-one" promotion.
"I am grateful to have managed to sell them all in the end."
Source: The Star
