Demand for 1kg cooking oil up since November 1

Written by TheMole

KUALA LUMPUR — December 15, 2016: The demand for the one kilogramme cooking oil in polybags has increased significantly since the restructuring of the Cooking Oil Stabilisation Scheme (COSS) from November 1.

According to Managing Director of Ikira Sdn Bhd, Suhami Abdul Razak, who also owns the Ikira brand repackaging company, said that his company was not affected by the implementation of the scheme because the amount of cooking oil supplied by the government to be repackaged is sufficient.

“In our line of business, we really need big volumes to ensure our sustainability. The market competition for the 1kg subsidised cooking oil may not be as stiff as that of the bottled cooking oil, given the fact that consumers who opt for bottled packing are loyal to certain brands only.

“So far we have been able to fulfil the demand of our existing customers. We distribute about 400 cartons a day to the retail and wholesale markets around Selangor and Kuala Lumpur,” he said, according a Borneo Post report today.

Suhaimi also refuted the allegations that 1kg polybag cooking oil is of lower quality, apart from assuring that repackaging companies appointed by the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) always conform to the specifications set to repack cooking oil.

“Our company buys only from cooking oil processing factories approved by KPDNKK.

“And for each shipment delivered to our facility, a sample will be taken and stored for three months for quality checks and to ensure our packing is done according to the required specifications. So, when a problem arises, we can always trace it back to our samples,” said Suhaimi, who started his cooking oil business since 2011.

“We will ensure the packing and processing at our end meet the guidelines set forth by the industry practice of Makanan Selamat Tanggungjawab Industri (MeSTI) or Food Safety is the Responsibility of the Industry, and Department of Islamic Development Malaysia (JAKIM).”

Commenting on the allegations that 1kg polybag cooking oil is sold at a cheaper price because it is recycled cooking oil, Suhaimi denies it and said that the basic commodity is sold at a cheaper price because it is subsidised by the government.

“The truth is that the current market price of our cooking oil may reach RM4 per kg in a free market economy. Thanks to the subsidy by our government, the 1kg polybag cooking oil is retailed for only RM2.50,” he said while emphasising that the supply of cooking oil his company gets is certified HALAL.

According to Suhaimi, his company was given the mandate by KPDNKK to pack the commodity under the rationalisation scheme at the beginning of this year.

“The type of cooking oil packed by our company belongs to the Palm Olein CP8 category and we are responsible for the packing of the subsidised 1kg polybag and non-subsidised 5kg cooking oil,” he said.




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