KPDNHEP prepared to control price of onions, shallots if current shortage persists

Bernama file photo

KUCHING (Nov 23): The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) is prepared to make shallots and onions a price controlled item if the current shortage persists.

Its minister Datuk Seri Alexander Nanta Linggi said that just like other necessities, shallots and onions were influenced by supply and demand thus the ministry was committed in tackling any issues that inconvenienced customers.

“We will not hesitate to implement price control to address the issue of prices increase in shallots/onions in the country if it is found that there is an urgent need and the situation warrants it.

“The implementation of price control is integrated under the Price Control and Anti-Profiteering (Maximum pricing) (No.2)(Amendment) 2020,” he said.

He added that the KPDNHEP enforcement team would continue to conduct inspections and monitoring at all levels including suppliers, wholesalers and retailers in an effort to address the issue.

“If supply is reduced and unable to meet the high demand, it will certainly affect the price increase in the market. This is the case with Indian shallots, which also affects the overall supply of shallots and onions in the country, except for some types of onions such as Holland onions.

“We are closely monitoring the development of the issue and are always looking for the best way to resolve the problem,” said Alexander in a statement today.

He explained, for the record, onion supplies in the country were imported from 29 countries, with five countries being the biggest exporters namely India (36 per cent), Pakistan (23 per cent), China (19 per cent), Netherlands (9 per cent) and Thailand (7 per cent).

“India exports the most onions with a total of 149,539,411 kilogrammes to the country based on the high demand influenced by the local consumptions,” he said.

However, he said on September 14, the Indian government issued a ban on export of all types of onions except Bangalore Rose and Krishnapuram to meet their domestic needs following the floods in their country.

He also said Malaysia imported onions from various countries as a strategic approach to ensure that supply would remain adequate, thus avoiding dependence only on one country.

“This is because if an exporting country experiences natural disasters or economic sanctions, then we will not be affected and supply will always be consistent even if the price will receive the impact,” he said.

Following that, he said 121 importing companies began to increase their total import of onion supplies from countries like Pakistan, China, Netherlands and Thailand.

“In total, Malaysia imports eight types of onions and shallots which are mostly from India, China, Myanmar, Thailand and Netherlands,” he said.

The importation of onions is under the supervision of the Ministry of Agriculture and Food Industry (MAFI), while KPDNHEP has the role of ensuring that there is no profiteering activity or excessive price increase, other than the consistency of supply in the market.

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