The Malaysian Insight

A WHOLESALE market in a rural district in Kedah is hoping to bring low prices to working-class residents by cutting out middlemen in the grocery supply chain.

The soon-to-open Pasar Borong Rakyat (people’s wholesale market) aims to get its produce straight from farmers and fishermen in the area and sell it to consumers at wholesale prices.

This approach, said the market’s founder, Senafi Awang Chat, 64, is expected to see vegetables, such as sawi, kangkung and spinach, sold at half the market price.

“If sawi is RM5 per kg, ours is RM2.50. If the market rate for red chillies is RM9 per kg, we sell at RM8,” Senafi told The Malaysian Insight of the discounts his market will offer once it is up and running next month.

“Ikan kembung will be cheaper than market prices but its price is inconsistent. We are RM1 cheaper than market prices.

“If ikan kembung is RM12 per kg, ours will be RM11 per kg. The same with local chicken and beef, we will be RM1 cheaper.  

“Our speciality is vegetables: we don’t take them from middlemen. So, our prices are lower. If we buy at RM2 per kg, we sell back at that price.”

Senafi hopes that this way, the market will also boost the local economy as it will benefit local farmers and fishermen.

“This way, I can sell cheaper. My profits will be less than 30% of my original cost for my stock.”

Last Tuesday, former Council of Eminent Persons chairman Daim Zainuddin said monopolies in the food supply chain were behind farmers and fishermen not earning much from their harvests and catch.

At a conference in Kuala Lumpur moderated by Bernama chairman Azman Ujang, Daim said fishermen in villages do not enjoy the actual profit from their hard work as middlemen took advantage of them.

He gave an example of rural fishermen selling their freshly caught kembung at RM7 per kg to middlemen, but the middlemen would sell the fish at RM22 per kg in urban areas for a hefty profit.

Meanwhile, Senafi said the wholesale market was an expansion of a small sundry shop he opened two years ago in Pendang.  

He said he first started selling vegetables and fruits at night markets in the area.  

The wholesale market is being built at a cost of RM300,000 from his pocket, without any loan or fund from other parties. It sits on a 743 sq m plot with parking facilities.

Besides fresh food, it will also sell spices, sauces, condiments and snacks from local producers.

“Every day, people ask me to sell their products and I make space for all of them as I want to be as open as possible. I will also take products that are already well known as I want healthy competition.”

The opening of his wholesale market will also coincide with the Buy Muslim First (BMF) campaign, which he supports.  

“When the campaign started, I felt even more motivated. I’ve always prioritised selling Bumiputera and Muslim products at my old shop but now, I will sell even more.”

Senafi also slammed those that described the campaign as racist, saying it was only aimed at helping small companies, most of which are owned by Bumiputeras.

He will also sell non-food items from non-Bumi companies, such as household cleaning and hygiene products.  

“It’s only for food items that I will prioritise Muslim producers to ensure that they are halal. We also welcome non-Muslim customers.” – October 28, 2019.