A flour shortage in the country that had threatened to cut off supplies of the favourite roti canai has been averted with an agreement to boost production, reports said today.

The government also this week flooded the market with an extra 70,000 tonnes of cooking oil to address a shortage caused by price-hike rumours that triggered panic buying.

Restaurant owners had warned that high prices and thin supplies of flour meant that roti canai, the national dish of crispy fried bread, could be off the menu within days.

But Domestic Trade and Consumer Affairs Minister Shafie Apdal said flour millers had agreed to raise their output from 9,400 tonnes to 11,000 tonnes per month, the New Straits Times reported.

"There will be no shortage of roti canai at least... that I can assure you," he told the newspaper.

Restaurant owners welcomed the move, saying flour wholesalers were currently charging about 15 to 45 percent above the price-controlled rate of RM33.60 for a 25-kilo bag of flour.

Rising prices are a sensitive issue in Malaysia, and the government has taken prompt action over the shortages as it prepares for general elections expected to be held this year.