21/01/2008 (Bernama), Kota Bharu - Supply of cooking oil to Rantau Panjang will be reduced to curb smuggling which has become rampant.

Domestic Trade and Consumer Affairs Minister Datuk Mohd Shafie Apdal said the border town received one-third of the 55,000 tonnes of cooking oil supplied to Kelantan, which was in excess for a district with a rather small population.

"That is why we will reduce the supply as the excess has resulted in cooking oil being smuggled to the neighbouring country," he told reporters here after holding a briefing on issues related to prices of consumer goods here today.

However, he added, the ministry had not decided on the amount to be reduced.

He said although supply would be reduced, consumers in Rantau Panjang should not be unduly worried over a possible shortage of the commodity as the amount supplied should be sufficient.

"We've decided to reduce the supply to the district to overcome smuggling which could cause shortage of cooking oil for the local consumers, but the reduction will not affect their requirements."

On the Fair Trade Practices Policy introduced by the government to check the monopoly of producers by hoarding goods in order to increase prices, Shafie said the companies were being monitored by the ministry.

He said implementation of the policy required constant monitoring to make it effective and when fully implemented, the government would not compromise with traders who took advantage of situations in order to raise prices of goods.

He said with the enforcement of the related law, offenders could be fined millions of ringgit.

"Under the Price Control Act 1946, the government can only act against traders who sell controlled items at above the ceiling price or those who do not display price tags on controlled and non-controlled items," he added.