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.15/10 Enriched wheat flour to cost even more
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
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.A price hike in flour related goods is inevitable.
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.
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.