Monday, May 9, 2011

Sugar price up 20 sen from tomorrow

The government has announced that the price of sugar will be increased by 20 sen, from RM2.10 a kilogramme to RM2.30 a kilogramme, effective Tuesday.

Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Mohd Zain Mohd Dom said the price increase was to rationalise the retail price of sugar in line with the decision taken by the Economic Council Monday.

"The government took the decision to rationalise the subsidy for sugar following the decision by the Economic Council that the government's subsidy for sugar should be further reduced," he told reporters here.

He said despite the price increase, the retail price of sugar in Malaysia was still low as compared to neighbours Indonesia, Singapore, Thailand and the Philippines.

In Indonesia, he said, the price was RM3.80 a kilogramme, Singapore (RM3.61), Thailand (RM2.31) and the Philippines (RM4.50).

Mohd Zain said prior to this rationalisation exercise, the government had to shoulder sugar subsidy amounting to RM400 million a year.

With this increase, the government would still have to shoulder RM283.4 million in subsidising sugar yearly and that the savings of RM116.6 million accrued could be used for development purposes, he said, adding that the announcement was being made early so as to prevent hoarding and panic buying.

He said consumers should view the move positively as consuming sugar in large quantities was hazardous to health.

He added that most of the sugar sold in Malaysia was imported from Australia and Brazil. -- Bernama

No comments:

Post a Comment