Malaysia to face wheat flour shortage?

KUALA LUMPUR May 17 - Roti canai is a well-known Malaysia staple eaten at any time of the day.

It is simple and fast to make and delicious and not to mention cheap making it one of the rakyat's favourite food during breakfast and other meals.

However, a crisis could be looming around the corner as wheat flour supply is constricted due to the on-going Ukraine-Russia war.

Both countries command a third of the world's wheat supply.

The World Bank estimates that there will be a 40 percent shortage of wheat in 2022.

India meanwhile has frozen flour exports including to Malaysia with immediate effect to ensure it has enough domestic supply.

Local entrepreneurs feeling the pinch

Local food producers which uses wheat-based flour are already feeling the pinch.

Frozen roti canai maker Khairul Najib Asarullah Khan said local food producers such him are already squeezed as flour prices have already increased to RM90 per 25kg gunny bag from RM60 previously.

"This shortage is affecting almost all food producers such as curry puff, pizza, bread and others.

If the situation persists, the country will have a nationwide shortage by July," said the food entrepreneur in a Facebook posting.

Najib sells frozen roti canai under the brand CR Khan.

Malayan Flour Mills, FFM Bhd set to benefit?

Obviously, several flour companies are set to benefit if flour supply continue to be constricted.

However, these companies can't make excessive profit and have to walk on a tightrope as flour is a controlled item under the Price Control Act 1961.

Malayan Flour Mills Bhd reportedly said recently it is working on a price adjustment proposal among several measures to mitigate business uncertainties due to volatile commodity prices, as the global economy contends with the lingering impact of COVID-19-driven movement restrictions.

It's chairman Tun Arshad Ayub said the wheat flour milling firm is also mindful of the effects from the ongoing Ukraine geopolitical situation and the potential unfavourable impact of global weather on its business.

PPB Group Bhd which controls FFM Bhd could also  reap a bountiful harvest as demand surges.

It is also reported that FFM Bhd which is the country's largest wheat flour milling mill is forced to source wheat from the US and Australia which is more expensive compared to wheat from Ukraine.

Will both companies benefit from this scourge?

In the meantime, Malaysians may have to pay a little extra for their roti canai telur or stop eating it for a while if it burns a hole in their pockets. - DagangNews.com