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Industry players reluctant to accept two-tier cooking oil pricing proposal, says Salahuddin

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KUALA LUMPUR: Players in the cooking oil industry seem reluctant to agree to a two-tier cooking oil pricing proposal, the Dewan Rakyat was told.

Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub said the response from the industry players was based on protecting the interests of smallholders.

"From time to time, we try to solve this problem through dealings with industry players on two-tier pricing , but it seems that the industry is a bit reluctant because they want to look after the smallholders," he said during the question-and-answer session today . He said this in response to a question by Cha Kee Chin regarding the government's willingness to increase the quota of subsidised cooking oil packets in the local retail market so that the supply will be sufficient.

Before this, there was a proposal regarding the feasibility of pricing through a two-tier system for cooking oil for domestic use and export since it is currently determined through a single-price system. To a supplementary question by Chu regarding enforcement on leakages and whether the country is facing a crisis in the supply of the commodity, Salahuddin said that so far, the supply of subsidised cooking oil packets has not reached a crisis level.Apart from this, he added that the ministry will not compromise on the leakage aspect with a total of 2,896 inspections carried out over the last two months with 13 cases brought to court.

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