PETALING JAYA: There will be no immediate reduction in vegetable and poultry prices despite the recent strengthening of the Malaysian ringgit against the US dollar, say consumer groups.

Federation of Malaysian Consumers Associations (Fomca) chief executive Saravanan Thambirajah said it is still too early to determine the impact of cheaper imported livestock feed and fertilisers on local vegetable farmers and livestock breeders.

“An immediate and sustained reduction in food prices should not be expected despite the recent strengthening of the ringgit.

“While this currency shift has provided some relief by lowering the costs of imported livestock feed and fertilisers, the upward trend of the US dollar may see prices rising again in the near future,” he said.

He was responding to public grouses over chicken prices which had yet to come down despite the strengthening of the ringgit.

Owing to the volatility of the currency due to unforeseen external factors, Saravanan suggested the government and relevant stakeholders focus on long-term measures to improve efficiency and address supply chain issues contributing to higher food prices.

He said the Domestic Trade and Cost of Living Ministry should hold talks with the Agriculture and Food Security Ministry as well as the International Trade and Industry (MITI) to see if lower import costs could be translated to lower prices of certain imported food items.

“These talks should prioritise monitoring currency trends until stabilisation occurs and explore strategies to mitigate price fluctuations.

“Structural improvements to the food supply system are critical to ensuring long-term resilience.

“Strengthening Malaysia’s agricultural and livestock sectors will not only boost food security but also protect consumers from the impacts of future currency volatility and global market disruptions,” he added.

In 2023, Malaysia imported animal feed totalling about RM7.85bil and about RM5bil worth of fertilisers.

Last week, Prime Minister Datuk Seri Anwar Ibrahim said the ringgit had yet to reach its fair value despite its recent rise against the US dollar.

Consumers’ Association of Penang’s (CAP) president Mohideen Abdul Kader said it was only logical and fair for prices of such items to decrease due to lower import cost.

“If local distributors don’t pay higher prices, then it is logical and fair that consumers also get lower prices.

“The relevant authorities must engage with other relevant agencies to fix a fair and reasonable price for the items they buy,” he said when contacted yesterday.

Mohideen added the Agriculture and Food Security Ministry should set up a special committee to monitor the currency movements to reflect the current prices of imported items linked to the livestock and farming sectors.

“Livestock and cooking materials are the most expensive now.

“Also many farmers who are practising conventional farming system spend large money to buy foreign fertilisers.

“Due to that they have to increase their produce items,” he said.

https://www.thestar.com.my/news/nation/2024/10/10/fomca-check-supply-chain-issues-to-keep-prices-low