Hike in cost of essential ingredients may lead traders to pass on extra expenses, impacting affordability for budget-tight individuals

PETALING JAYA: With Hari Raya Aidilfitri just two weeks away, many lemang sellers are raising their prices as the cost of coconut milk continues to climb due to the ongoing coconut shortage.

The price of lemang is expected to increase to between RM25 and RM30 per stick, driven by the soaring cost of coconut milk, a key ingredient that significantly impacts production expenses.

Despite the price hike, demand for lemang, a must-have traditional food during the celebration, remains strong. Sales are expected to pick up and peak in the days leading up to Hari Raya.

A lemang seller in Wangsa Maju, Kuala Lumpur, Mohd Karim Ismail, 57, said he has no choice but to increase prices for the festive staple due to rising costs of essential ingredients, particularly coconut milk, glutinous rice and bamboo.

“Coconut milk prices have increased and we are feeling the pinch. Lemang needs a lot of coconut milk, so we cannot cut corners. I hope customers understand why we have to adjust the prices. Some have complained but most get why we have to do it.”

Consumers Association of Penang (CAP) president Mohideen Abdul Kadeer raised concerns that such price hikes may lead to vendors passing costs to consumers, particularly during the festive season.

He said price hikes for coconuts have already led to higher costs for essential ingredients such as coconut milk, which is used in rendang, dodol and nasi lemak.

“Imported coconuts have seen a gradual price increase, reaching RM4 each while local coconuts now cost RM2.50 and the shortage of local coconuts remains.

“This has caused the price of coconut milk to increase to RM16 per kilogramme, which would significantly impact consumers and disrupt traditional food preparations.”

He said despite CAP raising the issue in December last year and a subsequent statement from the Federal Agricultural Marketing Authority promising to import more coconuts from neighbouring countries to ensure adequate domestic supply, the problem persists in some parts of the country.

Mohideen said according to traders, coconut wholesalers have said there will be no shortage during the Hari Raya celebrations.

“The government has announced plans to increase coconut imports to address the ongoing shortage and ensure a stable supply. However, the outcome remains uncertain.”

He said vendors may have no choice but to pass the full or a significant portion of the increased costs to consumers, which could impact affordability.

He added that as prices rise, consumers may become more selective in their purchases or reduce the quantity they buy, potentially affecting revenue for vendors.

“The higher prices of lemang could impact consumer demand during Hari Raya. Families who usually purchase large quantities of lemang for gatherings might cut back, especially if the price increases significantly.”

Mohideen said lemang holds significant cultural and sentimental value during Hari Raya, so some consumers may still prioritise it despite the price increase.

“If prices for other essential goods also become more expensive, it could strain household budgets further, reducing demand for premium festive foods.”

He called on the government to introduce price controls on essential ingredients such as coconut milk and rice to ease the burden on vendors and consumers, and stabilise prices for traditional foods.

“Many small-scale lemang vendors may raise the price of their products to reflect the higher cost of ingredients. However, this comes with the risk of losing customers, especially those on tight budgets during the festive season.”