KUALA LUMPUR: The government has clarified that it has not stopped providing subsidies for wheat flour, despite its earlier remarks on the matter.

Domestic Trade and Cost of Living Ministry Deputy Minister Fuziah Salleh said the subsidy for wheat flour, worth RM40 million, was not listed in Budget 2024 because it was bundled as part of the Rahmah initiative in the document.

She said this was because of the low demand for the wheat flour subsidy.

"The RM40 million subsidy is included in the RM200 million Rahmah initiative, as announced by the Finance Ministry," she told the Dewan Rakyat today.

"The government has allocated (the subsidy), but it has never been claimed for several years," she said during the minister's question time.

She also said no factories were willing to produce flour because of the lack of demand.

Fuziah was responding to a question from Datuk Mas Ermieyati Samsudin (PN-Masjid Tanah) about the wheat flour subsidy.

It was previously reported that the government ended the subsidy for wheat flour from this year as manufacturers were unable to produce flour at the controlled price of RM1.45 per kg.

Meanwhile, on the supply and price of sugar, Fuziah said manufacturers were suffering losses due to costs.

"We import 100 per cent of our raw sugar, and for every kilogram of sugar produced by our manufacturers, they incur a loss of 88 cents.

"However, the ministry still issued a supply control directive dated May 31, 2023, stating that both of our sugar manufacturers must produce 42,000 metric tonnes.

Fuziah said this is why the government gave sugar manufacturers temporary incentives to ensure the sustainability of the sugar industry.

https://www.nst.com.my/news/nation/2024/03/1030077/govt-denies-ending-rm40-million-wheat-flour-subsidy