Don’t cry... yet: Red onions being sold at a shop in Pasar Pudu. — AZHAR MAHFOF/The Star
PETALING JAYA: Restaurant owners are maintaining their menu prices, at least for now, despite India’s sudden move to impose a 40% export duty on onions.
They indicated that they would “wait and see” before making any decision on prices although the export duty had caught them unawares.
Malaysian Muslim Restaurant Owners Association (Presma) president Datuk Jawahar Ali Taib Khan said they had been surprised about the export duty, which they only found out from newspapers and social media.
“We were not told by any suppliers yet,” he told The Star.
Last Saturday, India announced a 40% export duty on onions with immediate effect until Dec 31, to improve its domestic supply and control retail prices.
Countries such as Bangladesh, Nepal, Malaysia, United Arab Emirates and Sri Lanka rely on Indian shipments, with Indian onions used in many traditional dishes.
Jawahar said operators would likely absorb the difference in costs if the price increase was nominal.
“Whatever it is, we will wait and see. Customers need not worry. There won’t be any sudden price increases at mamak outlets,” he said.
Restaurant owners might also look for alternatives, he said, adding that onions, tomatoes and chillies play a crucial part in mamak cooking, especially nasi kandar.“Without these ingredients in correct proportions, it is difficult to prepare nasi kandar curries.”
To a question, he said that other countries that supply onions were China, Egypt and Pakistan.
“However, Indian onions have a unique flavour, which can turn a dish from ordinary to extraordinary,” he said.
Malaysian Indian Restaurant Owners Association (Primas) deputy president RC Krishnan held similar views, saying that onion prices would not affect food prices much.
A check on his restaurant’s inventory and weekly order revealed that the price of a 9kg bag of Indian onions increased from RM14 on Sunday to RM19 on Tuesday.
“This is the immediate effect we see now, but it is still unclear how the export duty would affect the market prices of onions here.
“It will take some time for it to be felt,” he said, adding that operators would not increase prices right away and that prices of chicken and vegetables were of a bigger concern to them.
Krishnan noted that prices of onions and other ingredients had been fluctuating since the pandemic and that operators were already “numb” to it.
“We have previously bought onions for RM25 or higher per 9kg bag. I don’t think onion prices are going to affect food prices for consumers for now,” he added.
Selangor and Federal Territory Chinese Restaurant Operators Association vice-chairman Sia Boon Kong also believed that there would be a minor impact from India’s imposition of an export duty as onions were a somewhat minor ingredient.
“It’s not the main ingredient in a dish, unlike fish, chicken, pork or vegetables. Although onion prices may increase a little, it’s not going to affect the dishes much,” he said.
Furthermore, Sia noted that other than onions, there were substitutes that could be used to bring out the flavours in Chinese cooking.
Pertubuhan Sahabat Tomyam Prihatin SeMalaysia adviser Che Mamad Che Mod said members were less likely to be affected because they use more white onions from Holland.
“Red onions from India only make up about 10% or less of our ingredients,” he said, adding that his members also buy onions from China and Pakistan when there is a shortage or price increase.Bumiputra Retailers Organisation Malaysia president Datuk Ameer Ali Mydin said that Indian red onion retails for RM2.90 to RM3.90 per kg this month and that prices are expected to go up to between RM4.50 and RM5.90 in September.
“But I don’t think there will be a shortage,” said Ameer Ali, who urged the government not to impose a ceiling price for onions, like what it did for eggs earlier on.
“(Any ceiling price) will result in a shortage as all onions are imported,” he said.
