The government has not decided on raising the cap on wheat flour despite pressure from producers.

According to a source from the Domestic Trade and Consumer Affairs Ministry, the millers are discussing with ministry officials regarding the cap on wheat flour.

Asked if the government may consider raising the cap, the source said "nothing could be said for the time being" as the decision will depend on the discussion.

"However, not all flour is price-controlled items. Only general-purpose flour is a price-controlled item and for the moment the millers can consider removing subsidy and still sell the general purpose flour for the same price," he said.

On Monday, Bloomberg.com reported that Malaysia may risk seeing a flour deficit because millers cannot afford wheat prices.

The news agency reported that wheat producers are losing money for every bag of flour sold because of state-imposed price controls.

It was also reported that the Malaysian Flour Millers Association had asked the government to raise the cap temporarily.

The price of general-purpose wheat flour is now RM1.35 per kilo in Peninsular Malaysia and RM1.45 per kilo in Sabah and Sarawak.

'Look for other options'

Contacted later, Federation of Malaysian Consumers Association (Fomca) public relations officer Yusof Abdullah Rahman urged the government to look at other alternatives besides raising the cap.

"It is understandable that we are totally dependent on other countries for our wheat supply, and it is natural to face the shortage of wheat," he said.

"However, raising the cap on wheat flour will not be a good solution as it will only burden the public, especially those from the lower income group. Wheat flour is used to make food that we consume daily, and the increase in the price of the flour may only result in the price of other food products going up," he added.

Yusof said the government should consider importing wheat from other countries like India to overcome the shortage.

"India is also a wheat producing country. Maybe the government should import wheat from there," he said, adding that India is also suffering from losses because of its competitor Australia.