The Malaysian Insight

RISING prices of essential goods have not only affected consumers but also retailers, who said they are being blamed for the price hike.

Grocers and butchers who spoke to The Malaysian Insight at the Chow Kit and Pudu wet markets said high costs have also eaten into their profits.

They said it was unfair of consumers to assume that retailers were profiteering when they were buying from wholesales at higher prices.

Yap, 64, who sells vegetables in Chow Kit, said almost variety of greens have gone up in price because of the weather.

“Until the weather improves and we have sunny days, no matter what the government predicts, prices won’t come down,” he said at his stall.

“The prices of the items are set by the wholesale market. Since we are buying at a higher cost, we have no choice but to sell it at that rate or risk losing money.” 

“Because of the rainy season, farmers in Cameron Highlands also have to use more fertilisers, which pushes the cost up even further. Vegetables imported from China have gone up because it is winter there.

“When there is less supply, of course prices will go up as we can’t keep up with the demand.”

Yap sells broccoli and cauliflower at RM15 and RM17 per kg, respectively. Both are imported from China.

Others like kailan now cost RM13 per kg while long beans which used to cost RM5-6 per kg have gone up to RM9.

“Because of the rain, the quality of the vegetables we get is also really bad but customers are still buying. The only difference is that they are buying less.”

Prime Minister Ismail Sabri Yaakob recently said retailers were not to be blamed for the high prices  were due to the increased costs in the various stages of the supply chain.

He called on the agriculture and food industries ministry to cooperate with the Domestic Trade and Consumer Affairs Ministry to resolve this issue.

Costly chicken

Mathawan, 52, who mostly sells his vegetables to restaurants, said he has been fielding many complaints from customers.

“It is actually very common for prices to go up at the end of the year; this happens every year until the rainy season ends.

“My customers are mostly restaurants and they have been complaining that vegetable prices are too high but they are not able to pass on the cost to their customers.”

Fresh chicken is another essential item that has gone up in price.

A check by the Agriculture and Food Industry enforcement officers on September 10 found that fresh chicken was priced at RM8.83 per kg. By Deepavali, when fresh chicken was put on the price controlled item list, it cost RM9.50/kg.

Today, the price of fresh chicken fluctuates between RM9.50 and RM9.80 per kg.

Shah Herey, 29, who has sold chicken in Chow Kit for 10 years, said said the price for has never been this high.

“It is usually sold at RM7.50 per kg but today it cost RM9.50 per kg. My customers are still willing to buy, but they are buying less.

“Some opt to buy cheaper cuts of beef instead,” he said.

The price of beef has remained stable at RM20 per kg of imported Australian beef.

Even frozen chicken imported from Thailand now costs more, he added.

“A packet of boneless chicken from Thailand used to cost RM20; now we are seeing it sold at RM26.

“My customers will never buy frozen chicken as it is too expensive. It is usually the restaurants that buy it.”

Recently the government said it would be importing 200 containers of frozen chicken to enable the public to obtain chicken at a lower price.

At Pudu market, many vendors were selling their vegetables in bundles to attract more customers.

Lee, 43, said he doesn’t mind selling the vegetables in bundles at lower prices as long as he is able to clear his stock at the end of the day.

“I’m about to close so I don’t mind letting them go at lower prices,” he said.

Profiteering middlemen

Hari Krishnan, 58, who has run the family stall at the market for more than 45 years, said many of his customers were buying less due to the prices.

“Broccoli from China now costs RM13 per kg while cauliflower from India costs RM12 per kg, much cheaper than the China variety that sells for RM17/kg.

“Kailan cost RM10 per kg, long beans RM10 per kg, and bok choy RM7 per kg.”

Krishnan said many of his customers are going for cheaper alternatives.

“They are buying more brinjal and bitter gourd which are 3kg for RM10 and ladies fingers, which cost RM5 per kg.

A vendor who did not want to be named blamed the authorities for not taking action against the  middlemen who are profiteering.

“Enforcement officers come here to check how much we are selling the vegetables for but we are not the ones who determine the prices.

“The broker or middleman is selling it at a higher price to wholesalers who in turn sell it to us at a much higher price.

“When we sell it for a RM1 or RM2 profit, we are the ones who get blamed and fined,” the vendor said.

Chicken seller Mahmud, 45, is also feeling the pinch as his customers are consuming less chicken.

“The suppliers have increased the prices of fresh chicken but they have given us no reason. Now that it costs RM9.80/kg, my customers who used to buy two whole fresh chicken may only buy one and those who used to buy three only buy two,” he said.

Mahmud said he is not making much profit even though the prices are high because he doesn’t charge for cleaning or cutting up the chicken.

“Customers want us to clean, cut and even remove the skin. I have to hire workers to do this but I don’t charge my customers more for the service.”

A silver lining for Mahmud is that chicken is still much more popular than beef or seafood.

“One whole chicken can feed a family of 10. It is still a much cheaper source of protein.” – December 4, 2021.