How Price Is Determined

Cooking anoint is one of the items that is under control of Malaysian’s g all overnment. The set ceiling sets for this item is RM 2.50 for one-kg per packet. Once, Malaysians had experienced an subtle shortage of sugar, and resulted in hoarding by unscrupulous traders, triggering scare among consumers. The shortage or short supply of readiness fossil oil is caused by a substantial hike in the price of crude palm oil in the international market, and then the producers lowered their production and had caused artificial shortage. organisations wants to put price controls over this product because some traders increased the price to RM 2.80 and one-kg packs of cooking oil preferred by lower-income earners especially in rural areas and a good deal cheaper compared to bottle ones.

Ministry of Plantation, Industries and Commodities wants to give grant for the cooking oil producers only they said subsidy is not a long margin solution to this problem. Which is true because at that place are too umteen essential items on subsidy and this not only helps the people, exclusively the foreigners. People from Thailand and other neighbor countries come and smuggle our goods, oil and sugar for example.



They take this opportunity to buy cheap price at this country and sells it at higher price which is the principal(prenominal) objective of subsidy is to help people especially the lower-income earners.

Government can’t controls everything but consumers have the power to control. The subsidy will only make the consumers become pampered and distorts the economy. From sugar to flour, and if it is presumptuousness to cooking oils, everything will need the same thing and there is no fair and healthy competition among the producers. The absentee of subsidies may hitch different grades of cooking oils being introduced in the market. If consumer wants better cooking oils, they have to pay more while others can take away different grades. Consumers also have another option of not cooking using oils, but use other methods such as boiling or...If you want to get a dependable essay, order it on our website: Orderessay



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