Price hikes at the market blamed on pandemic-induced conditions, govt urged to help

PETALING JAYA: At the market, consumers are now getting a lot less than they used to.

The prices of almost all items, from fish to vegetables, have risen significantly over the past few weeks.

But as far as the suppliers are concerned, the price increase is inevitable, given that the Covid-19 pandemic and movement restrictions have curtailed production.

Consumers Association of Penang (CAP) president Mohideen Abdul Kader said prices are “out of control”.

Data compiled by CAP showed that the price of chicken at the market has risen from RM9 to RM10 per kilogramme since late August and traders have indicated that prices will rise further in the coming weeks.

Greens also cost more now. The price per kilogramme of ladies fingers has risen from RM7 to RM10 while the price of sawi is up from RM4.50 to RM6 and for tomatoes, it has risen from RM5 to RM7.

The per kilogramme price of cili padi has also gone up from RM7 to RM9 while the price of red chillies is RM25 now, up from RM20 previously and the price of carrots is RM6, up from RM4.

Mohideen attributed the increase to a drop in production caused by the pandemic.

“Farmers have shrunk their farms and reduced the varieties of crops they cultivate.”

He said there has also been a decline in fish landings as a labour shortage resulted in fewer vessels going out to sea, while livestock production has also dropped.

Mohideen added that as domestic food production drops, reliance on imports will rise and this will have a negative impact on the economy and the value of the ringgit.

“This also puts us at the mercy of supplying countries.”

He said current conditions on the sale of meat have also contributed to price increases.

“For instance, the regulations require that only dressed chicken is sold, eliminating the practice of on-the-spot slaughtering at the market.”

He said this has led to another level in the supply chain – the middlemen party slaughtering the chicken and keeping supplies in storage before delivery to markets or supermarkets.

“That also adds to the retail price.”

Mohideen said chicken and eggs are among the cheapest sources of protein and if the Domestic Trade and Consumer Affairs Ministry does not act to rein in prices, consumers will be deprived of this option.

Federation of Malaysian Consumers Associations chief executive officer Saravanan Thambirajah said apart from a list of essential items, the prices of food are determined by market forces.

“Consumer goods such as sugar, wheat flour, cooking oil, fertilisers and kerosene are declared as controlled items under the Control and Supply Act and specified under the Control of Supply Regulations,” Saravanan said, adding that other than items specified, consumers will have to pay the market price.

He said the government could help by offering subsidies to farmers for now to help them overcome their current difficulties.

“We must also remove the middleman or agent in the supply chain. Enable farmers to sell their products directly to the market. Improve the logistics of transporting food to the market,” he added.

Founder of The Urban Farmer Malaysia, Balan Nadarajan, said farmers end up incurring enormous losses whenever there is a disruption in the supply chain, putting them at the losing end.

“I believe the stakeholders should agree on a middle ground where both parties benefit. This will be beneficial to all, especially those in the lower income group.”

He said while prices of some items have risen, people could still get a good bargain during the pandemic, a situation he described as “intriguing”.

“What matters is that as customers, we should buy only what we need,” he added.