Who decides the local prices of wheat and wheat flour?

I WOULD like to revisit an issue that was highlighted in the media in October last year on the hike in prices of flour around the Deepavali period. The issue was raised by the Penang Hindu Association (PHA) which said the high retail prices were akin to “profiteering” by businesses.

The PHA raised a number of issues including the price of rice grains being only RM1.30 for 500g whereas in flour form, it cost RM3.20. It also highlighted the fact that manufacturers were selling rice flour in packets at very high prices, making up to a staggering 200% profit for each packet.

These are items in high demand during the Deepavali season. The grains are ground by big manufacturers before being packed and sold at much higher prices.

The increase in the prices of flour especially during festive seasons has been noticeable for many years now.

Aren’t there any price controls over flour? Aren’t the authorities aware of the situation? In fact, who are the authorities responsible?

What could the actual reason be for flour prices to keep going up? Are the manufacturers to be blamed? Is monopoly behind it? Is it the import duty?

Whatever the reason, I hope this situation will be addressed by the authorities.

Being an avid pastry consumer, I visit the local stores and hypermarkets to check the prices of flour on non-festive seasons.

So far, I’ve found that only the price of 1kg packets of wheat flour is subsidised. Further research on the Internet showed me that wheat price is Malaysia is among the highest in the region.

So the question is who controls the wheat trade in Malaysia? Is there a monopoly in the local wheat trade? I hope these questions will not fall on deaf ears. VINO K Shah Alam