FOOD prices will rise further when the government removes subsidies for chicken and bottled cooking oil at the end of this month, the Federation of Malaysian Consumers Associations (Fomca) said.

Its president Marimuthu Nadason said the people must brace themselves, as the increase in food prices is inevitable, which he blamed on a lack of solid government policies.

“We never experienced this crisis (food prices) before 2018. None of the ministries are focusing on anything.”

“What have we achieved in terms of food security? The country’s revenue has dropped, how much can the government help the rakyat,” he told The Malaysian Insight.

Cooking oil and chicken

The next hit will come starting July 1, when the subsidy on chicken and bottled palm oil cooking oil is removed, and prices left to market forces.

This will apply to cooking oil sold in 2kg, 3kg and 5kg bottles, which currently have maximum retail prices capped at RM12.70, RM18.70 and RM29.70 respectively.

However, the government subsidy for palm oil cooking oil sold in 1kg polybag packets at RM2.50, will remain.

As for poultry, the prices of chicken and eggs are expected to increase next month after the maximum retail price scheme is stopped on June 30.

From February to June 30, the price of standard chicken is capped at RM8.90 per kg, and at RM9.90 for super (cleaned and dressed) chicken.

Before February, the price of chicken had been fixed at RM6.10 per kg ex-farm, RM7.80 per kg wholesale and RM9.10 per kg retail, under the government’s price control scheme since January 1.

Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi, after a dialogue session with chicken producing stakeholders yesterday, said chicken will cost more than RM10 from July 1, but should not reach RM12.50.

“It will be a little more than RM10 kg, which is what we hope for,” Alexander told reporters after the dialogue session.

Consumers’ Association of Penang (Cap) president Mohideen Abdul Kader said Putrajaya must be strict about monitoring profiteering after July 1.

“The Malaysian Competition Commission is also conducting a study on chicken cartels.”

“If there is evidence of cartel manipulation, then action must be taken against them,” he said

Sugar - yet to be decided

Wheat is another raw ingredient that has gone up in price. According to news reports quoting Indian-Muslim restaurants, a 25kg bag of flour was RM49.90 in January but was now RM65.

Another item set to increase is sugar, which is currently capped at RM2.69 per kg.

Putrajaya has not made a decision, although it has been in talks with the country’s major sugar producers on raising the ceiling price, to cope with inflation and higher input costs.

Sugar producer MSM Malaysia Holdings Bhd group CEO Syed Feizal Syed Mohammad has been reported saying that all input production costs combined have increased by 20%.

Domestic Trade and Consumer Affairs Ministry secretary-general  Azman Mohd Yusof said the cabinet will make a decision on the matter once Putrajaya completes stakeholder engagement.

Fomca’s Marimuthu said Putrajaya must take a strong position as processed food has gone by at least 20% to 25%.

“The government of the day must have a sustainable agricultural and food policy.”

“We have seen three governments in the last four years. There must be a plan executed by whoever is in power.”

He also advised the people to budget their expenses prudently to ensure they can carry on with their lives.

Fish and vegetables

Fish and vegetables too, have increased in price over the course of one year, with figures from the Department of Statistics Malaysia showing hikes in most states in April this year, compared to the same month last year.

Bell pepper increased year on year by 27.5% to reach an average price of RM17.57 per kg this April, while green beans increased 23.3% to reach an average price of RM11.78 per kg.

Cucumber increased by 19.3% to reach an average of RM8.92 per kg and fresh green chillies  increased by 15.5% to reach an average price of RM15.33 per kg.

Fish, which is a popular source of protein among Malaysians, also recorded a price increase.

Ikan Keli (Catfish) is RM10.13 from RM9.31 in April last year, Ikan Siakap (Asian Seabass) is RM20.67 compared to RM18.15 previously, and Ikan Kembong (Mackerel) is RM16.57 compared to RM15.13.

Cap’s Mohideen advised consumers to report any drastic price hikes to the authorities or to consumer associations. – June 22, 2022.