PUTRAJAYA: The removal of the RM8.25 subsidy per 25kg bag of all-purpose flour is now in effect, but eateries say they will maintain prices to keep their customers happy.
In a statement yesterday, Datuk Seri Alias Ahmad, the chief secretary to the Domestic Trade, Cooperatives and Consumerism Ministry, said that the subsidy was retracted because most households did not buy the 25kg bags.
But the subsidy for the 1kg bags of flour remains.
One of the dishes affected by the subsidy removal is local staple, roti canai.
Owner of Sri Paandi Restaurant in Petaling Jaya, A. Sinnaiah, 52, however, said he wants to maintain the price of RM1.30 a piece.
He said the increase of RM8.25 per 25kg of flour does not even render a 10sen hike.
Sinnaiah said his restaurant uses 375kg of Blue Key flour a month, so the subsidy removal will increase his monthly costs by RM123.75.
It is also learnt that with the 25kg bags of flour currently in short supply in the past week, some restaurants have started purchasing the 1kg bags of the same brand.
Jamal Mohamed, 76, who has been running Restoran Jamal Mohamed in Petaling Jaya for about 40 years, said he only found out about the subsidy removal when he went to buy his stock at Selayang market on Monday.
“I am not happy that there was no official notice on this before,” he said.
But he added that he will not be increasing the price or decreasing the size of his roti canai, which is priced at RM1.20 each.
“I have to keep my customers happy,” he said.
Consumers Association of Penang president S.M. Mohamed Idris said that restaurants had no justification for raising their prices.
“It’s just a few sen, so it can be absorbed. Traders must not exploit the situation as the increase is nominal compared with price per kilogramme of flour.”
Alliance Bank chief economist Manokaran Mottain said that if any businesses increased prices, then enforcement agencies should take action.
“Traders will be making savings from lower pump prices, so they must take that into account. It would not be fair to raise prices,” he said.
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