Monday, December 1, 2008

Cheaper consumer goods through cooperatives?

Prices of consumer goods have skyrocketted of late with the average wage earner at odds on how to make ends meet. The fall in petrol prices have not had a noticeable effect on other prices across the board. In true Malaysian tradition, the purveyors of essentials conveniently forget, or are made to forget, that petrol is cheaper. To be fair, they are also complaining of hikes in other prices which also have an effect on their pricing.

It is a vicious cycle. Take for example, the humble roti canai that almost all Malaysians love "banjir" (flooded) with dhall and sambal. When petrol prices went up, the cost of the breakfast favourite also went up because the chap who supplied gas to the restaurant also upped his charges as did the host of others who played a role in keeping the eatery going .

The restauranteer also has to pay higher prices for his clothes. his food, his entertainment. The list goes on.

When the petrol price went down quite a bit recently, roti canai prices slipped by 10 sen or so. And have you seen the roti canai of late? Two bites and its gone. One has to order three roti canai for a hearty breakfast.

So where does that leave us? The situation appears to be worsening with no end in sight to spiralling prices - of everything.
I think we are forgetting a valuable resource that has almost become an institution in Malaysia that can help find some comfort for the average Malaysian whose wallet has been hit hard.

I am talking of the co-operatives that exist in almost all sectors. I believe the time has come for them to spring into action in terms of selling dry and "wet' consumers items - and cut out the midleman who for the record has my sympathies. But being the resilient lot that they are, I am sure they can find alternative sources of income by being middlemen in areas that do not touch our stomachs.

There was a time when some co-operatives had shops in company premises or in rented space outside selling, among others, rice, oil, and canned goods. These were almost regular shops which staff frequented after working hours or during their tea and lunch breaks.

But those were the halycon days before the economic crunch hit the country when people were more worried about convenience than prices. But today, price is the bottomline in purchases for most, with perhaps the exception being the well-heeled who don't have to count their ringgit every time they go grocery shopping.

I believe the time has come for co-operatives to go back to helping members facing the shrinking ringgit by buying in bulk from wholesalers and selling them at less-than-market prices to members.

We may save a few ringgit a week but they will definitely total a tidy sum over the months. This is where membership in co-operatives can help the ordinary Malaysian wage-earner.

In India, there is a different system that works on almost the same principle.
The government sells "rationed' goods, among others, like oil, rice, wheat flour, dhall and milk at lower prices to all households. All one has to do is get a ration card from the municipal authorities.

No one is shy about getting the rationed goods as they translate into smaller grocery budgets at the end of the month.

We need to rethink our options, especially where our stomachs are concerned, at a time when the average pay packet does not go as far as it did.

Food for thought?

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