Food Price
Ever wonder why Malaysians are paying more for food, even living in a blessed country that could grow crops all year round?
Check out some facts:
The most significant factor affecting food prices is the lack of investment and focus on the agricultural sector. In Malaysia the public development in agriculture fell from 22% in 1980 to 3.8% in 2007. Agriculture’s contribution to gross domestic product fell from 22.9% in 1980 to 7.7% in 2007. The result was a greater dependence on food imports. Malaysia’s import bill increased from RM11.6 billion in 2003 to RM21.5 billion in 2007, an increase of 85% in just four years. |
As the writer of the letter, N. Marimuthu, President of Fomca suggested: "to reduce dependence on food imports and to ensure affordable food prices and more important food security, the government needs to invest and give higher priority to food and agricultural development."
The various measures need to be undertaken as suggested are:
1. Land Reform
2. Government to help producers deal with weather and market risks as well as put in place a regime of incentives framework that will reach all producers efficiently.
(Due to various anti-competitive practices in the market such as market collusion, licensing and APs, the prices of food and other items are too often distorted. Through market collusion certain traders or groups of traders are able to manipulate prices thus preventing prices to be determined by an open and free market; prices are thus higher than they would be in a free and open market.)
3. Strengthening farmer and consumer institutions such as farmers and consumer cooperatives. Example, the expansion of the Pasar Tani.
4. Low price consumer market mechanisms at the retail end.
5. Consumers awareness, such as to better understand how the market works and how prices are determined; to be more open-minded and critical about their consumption patterns and lifestyle; to learn the knowledge and skills to better manage their consumption and their finances, often differently from the past, to face these challenging times.
Source: http://www.thesundaily.my/news/100100
