Tuesday, June 03, 2008
MMail : Consumers will have to cut down on expenses
3 June 2008
Consumers will have to cut down on expenses
|
“Rice is our staple food. It is such a big part of our diet.
With rising prices, the burden om consumers will of course be higher,” stated Muhammad Sha’ani Abdullah, the secretary-general of Federation of Malaysian Consumers (FOMCA).
He predicts in order to cope with rising prices, consumers will have to cut down on expenses, such as books and other luxuries.
“Consumers will also have to start looking into unbranded products which are cheaper and be prudent in their spending. For those who can afford to do so, growing your own vegetables will be one way of cutting down on your grocery bill,” said Muhammad Sha’ani.
An informal survey by Fomca into rice pricing in supermarkets revealed that ceiling prices on certain varieties of rice, such as the 5 per cent and 10 per cent broken rice mix, were not being followed.
Sha’ani reported that prices were RM10 over the ceiling price in some cases and the printed receipts did not accurately state the variety of rice purchased. Fomca noted consumers stick to a preferred brand while sundry shops have reported difficulty in getting certain varieties of rice.
“There are mechanisms in place to help control the price of rice. However, Bernas is not enforcing these mechanisms, a situation that we found very surprising.” According to Sha’ani, Bernas enjoys joint ventures with rice exporters in Thailand, which allows them to negotiate favourable prices.
However, this has not been passed down to consumers.
“Bernas has control over the national stockpile of rice which is used to regulate prices but they have not been enforcing it.
“From 140 direct retail outlets nationwide, they now have zero and currently claim only 45 per cent of the market share. How can this be? They have left themselves open to manipulation,” said Sha’ani.
A letter sent by Fomca to the rice control division of the Ministry of Agriculture over a month ago addressing these issues did not receive response.