Monday, May 09, 2011

Sugar Price Up

IF the economy is doing well as claimed by politicians over and again then how come prices of basic consumer goods are rising? They cannot use the excuse that price of sugar in other countries are higher for the increase 20 sen rise in sugar.
The other excuse is the government wants to reduce the subsidy for sugar. So when the subsidy is reduced the difference must be borne by the consumers! But isn't our shrinking ringgit got to do with increasing prices. We are importing and the price of import has not changed much. The real reason is our ringgit is shrinking and we have to pay more for the same volume we used to import. What next?

Read the Bernama news report on the price increase.
Sugar Price Up 20 Sen From Tomorrow

PUTRAJAYA, May 9 (Bernama) -- The government Monday 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.


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