Stable Prices for Essential Food Items During Festive Seasons: The Role of Subsidies and Logistical Measures

The Challenges of Ensuring Stable Prices

Ensuring stable prices for essential food items like coconuts during festive seasons requires continuing support through both subsidies and logistical measures, says Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry (KLSICCI) president Nivaas Ragavan. He notes that with Thaipusam approaching, demand for certain goods, like coconuts, surges, exerting pressure on supply chains and leading to price fluctuations, especially upwards.

“Transportation constraints and the need for timely delivery add to the complexities, resulting in a temporary spike in prices for these items leading up to the festival,” he told Bernama.

The Impact of Diesel Subsidies on Transportation Costs

Nivass said that removing diesel subsidies had a noticeable impact on transportation costs. “Vendors and suppliers now face higher logistics expenses, which inevitably translate to increased consumer prices.” This is especially challenging during festive seasons when transportation needs are more critical, he added.

Challenges Faced by Small Vendors

When asked about the challenges small vendors face during festive seasons like Thaipusam in securing and selling essential items, Nivass said various difficulties are encountered, including price hikes from wholesalers, supply shortages, and rising logistical and transportation costs.

“There are also cash flow constraints, as many small vendors operate on tight budgets, making it difficult to secure bulk quantities. Despite these challenges, small vendors remain resilient, working long hours to meet demand and sustain their businesses during this crucial period,” he said.

A Collaborative Approach to Addressing the Challenges

Nivass said addressing these challenges requires a collaborative approach involving stakeholders, from producers to policymakers. “Investments in better logistics infrastructure, subsidies for essential items during festive seasons, and support programmes for small vendors can help stabilise supply and prices.”

“Public awareness about these challenges can also foster greater empathy and support for local businesses during festivals like Thaipusam,” he said.

Conclusion

In conclusion, ensuring stable prices for essential food items like coconuts during festive seasons requires a comprehensive approach that involves both subsidies and logistical measures. By understanding the challenges faced by small vendors and the impact of diesel subsidies on transportation costs, stakeholders can work together to stabilize supply and prices, ultimately supporting local businesses during festivals like Thaipusam.

FAQs

What are the main challenges faced by small vendors during festive seasons like Thaipusam?

Small vendors face various difficulties, including price hikes from wholesalers, supply shortages, and rising logistical and transportation costs.

How can stakeholders address the challenges faced by small vendors?

Stakeholders can address the challenges by investing in better logistics infrastructure, providing subsidies for essential items during festive seasons, and implementing support programmes for small vendors.

What role do diesel subsidies play in the transportation costs faced by vendors and suppliers?

Removing diesel subsidies had a noticeable impact on transportation costs, resulting in higher logistics expenses and increased consumer prices.