Last time, it was sugar shortage and the scapegoats were so-called smugglers and hoarders whereas the real problem was price ceiling. Now, we are having cooking oil shortage. The scapegoats this time? Guess who?
This is getting old. This problem keeps recurring because the root of the problem has not been deal it with; the root cause is the price ceiling. Have we not learned anything from the failure of central planning?
Free the market and the market would solve this shortage by itself.
But no. This time, to shove the problem under the carpet, the government plans to subsidize the production of cooking oil. Or rather, the government is forcing those on the production side to subsidize manufacturers of cooking oil:
KEPONG: The Government has sorted out the shortage of packet cooking oil after assuring the 300 refineries and 30 packers that they would be compensated for their losses.
Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said the refineries and packers had also promised to resume supply of the 1kg packet of oil and ensure retailers sell them at or below the ceiling price.
He said to compensate the refineries and packers, the ministry would impose cess on the 4,100 oil palm estates from June 1 until May 31, 2008.
It expects to collect RM661.2mil in taxes for this period. [Compensation to get 1kg oil packets back in shops. The Star. May 9 2007]
Yup sire. Increase the cost of producing palm oil. Impose large enough a tax, the government might even reduce global supply of palm oil!
Less supply for everybody. Brilliant!
