THE steep increase in the price of onions is not due to a shortage of supply but caused by price hikes in the countries of origin, said Saifuddin Nasution Ismail.

The domestic trade and consumer affairs minister said the price hike trend started from the exporting countries and multiplied, so that by the time it reached local markets, the price had increased.

“The price hike is seen from the time the onions enter into our country. That means it originates from the country of origin.

“And then, when it comes through the distribution chain, the prices increase accordingly,” he said after an event in Permatang Pauh today.

Local consumers have complained about the sudden price hike in Indian onions in recent weeks.

The ministry’s enforcement director, Iskandar Halim Sulaiman, had said it would investigate the supply chain of Indian onions, from importers, suppliers and wholesalers to the retailers.

Iskandar Halim had also said the enforcement division would take action under the Price Control and Anti-Profiteering Act 2011 against anyone found to have taken advantage of the shortage in supply of Indian onions to reap unreasonable profits.

It was reported that the price for a kg of Indian onions had been RM4, but was now being sold at RM12 per kg.

The increase in price was said to be caused by a drop in supply starting two months ago.

Saifuddin, however, said the supply of small and red onions, as well as garlic, was sufficient, even with India no longer exporting onions to Malaysia.

“India has stopped the export of onions to Malaysia due to internal demand and other factors.

“But, we still have supplies from China, The Netherlands and Pakistan.”

He added that his ministry was only in charge of enforcing price controls and had no power over the import of onions. – December 28, 2019.