Saturday, October 20, 2007

Lulu Wonders If You Know That Harga Tepung Naik?

did you hear about the increase in global flour price?

13/09 Now, price of enriched wheat flour to go up
An industry source told the New Straits Times that the Malaysia Flour Mills Association had informed flour wholesalers about the inevitable price hike due to a hike in the global price of wheat.The price of wheat flour has risen by about 70 per cent this year.Enriched wheat flour, currently tagged at RM1.70 to RM1.80 per kg, is not a controlled item like general wheat flour which is retailed at RM1.35 per kg.
From US$220 (RM770) per tonne early this year, the price of wheat has hit US$380 (RM1,330) per tonne this month, an increase of about 70 per cent
15/10 Enriched wheat flour to cost even more
Barely a month ago, housewives and bakery and noodle manufacturers were shocked by a hike in the price of enriched wheat flour by 30 sen per kilo.
But the worst has yet to come. It may cost 60 per cent more per kilo from tomorrow.The Malaysia Flour Mills Association has sent a memorandum to the Federation of Sundry Goods Merchants Association of Malaysia to inform its members of the price hike, to take place on the fourth day of Hari Raya.On Sept 15, the price of enriched wheat flour went up from RM1.70 to RM1.80 per kilo to RM2 to RM2.10.This triggered an increase in the price of noodles, bread, biscuits and other foodstuff.
From Tuesday, the price of enriched wheat flour will be between RM2.60 and RM2.70 per kilo.
A price hike in flour related goods is inevitable.
Whilst there will be some rumbling of profiteering, your charkwayteow seller is very much like you and me, trying to make ends meet in negaraku. He is more likely to be raising the price to cover for other hikes like cooking gas, toll, rent, labour and his plate of chap-fun. He is not raising it to buy a Navigation System (VNS) and Parking Assistance Camera (PAC) enabled Volvo V50.

Lulu is wondering about the whole ideology of control price.
Most items which make up the food portion of our Consumer Price Index (CPI) are probably also a CPI, as in controlled price item.

Just last month, there was a shortage on chicken. As whole chickens are controlled price item and the cost of producing the chickens had gone up due to the price increase in chicken feed, the breeders were selling whole chicken at a loss.
Do you remember the sugar shortage?
And what about the cooking oil shortage?
All control price items.

The government controls the price of the basket, and thus "boasts" that the CPI index has "contracted", "gone down" and once in a while allows the "slightly gone up".
No matter how painful it is, Lulu wonders if it would be better if control pricing was abolished and market forces were to determine the price of items.

Is it really because we want to protect the poor that we allow ceiling prices to remain? What can we do if we abolish ceiling prices to protect the poor?
Lulu is still debating this in her head.

9 comments:

Anonymous said...

The Consumer Price Index is often a laugh, not only in Bodohland where it's always used to assert/insist that "things ain't never that bad at all". An unrealistic set of funny and contrived figures forever touted as the true barometer on the ground.

The "control price" thing is always more of a political gimmick to imply that the gahmen cares very much. Yes, the control hasn't been consistent but we're not supposed to be bright enough to note. We're supposed to have amnesia too. The MSM is always there to help us into blissful forgetfulness too.

~wits0~

Anonymous said...

Lulu, you haven't factored in the forthcoming fuel price hike. ;) It'll have a multiplier effect. And even then the CPI will seem to have move rather insignificantly.

~witso~

What A Lulu said...

:P i have not even started on the petrol prices yet...

Anonymous said...

The RM90 million "cosmonut" fling on sending a mankey (not much different from a monkey) on a 10-day holiday should had been used to subsidize the hike in the price of flour in the country

zewt said...

i think the govt will never allow market forces to determine the prices. CPI will hit the sky. malaysian traders are so 'greedy' do u think they will not take it as a chance to make it another skim cepat kaya?

get on the debate about petrol then... hehe...

Anonymous said...

Maybe in Zimbabwe the CPI(if they ever have one) can be observed to head for the sky otherwise as a function of the "science" (more like 'art') of Statistics, its function seem to be one mainly for pooh poohing any alarm away.

~wits0~

Pearls said...

Yah, I agree with Zewt. There is really no way for the government to abolish price control and allow market force to determine the prices. The poor will be very badly hit if such actions are taken by the government.

I have a very strong suspicion that a lot of "shortage" of essential food stuff recently is created by these manufacturers, importers, distributors, wholesalers and what have you. You will be surprised on how much these buggers make by creating such "shortage and need to increase price" trick! Trust me, I know how such things are done and how much there is to profit from.

So, in this case, I must agree with the government. Infact, I think the government should seriously look into expanding their controlled price items and cracking the whip on such "shortage" manipulators! I mean seriously whip these buggers! These buggers are simply GREEDY!

Anonymous said...

BTW, U.S. Wheat Reserves Dropping Fast
http://tinyurl.com/285mko

Anonymous said...

New South Wales Wheat Crop to Fall Further on Hot, Dry Weather

/q "Harvest expectations in Australia, which competes as a wheat exporter with the U.S. and Canada, are being scaled back, straining world supplies. Wheat prices have more than doubled in the past year, reaching a record $9.6175 a bushel Sept. 28." u/q

~wits0~