Raise sugar prices in view of high costs, govt told

 

Sugar is a controlled item and those who sell above the ceiling price face a RM100,000 fine, three years’ jail, or both. (Envato Elements pic)

PETALING JAYA: A local sugar manufacturer has called on the government to increase sugar prices in light of the industry’s high operating costs and challenging environment.

In a statement today, MSM Malaysia Holdings Bhd (MSM) said local sugar refiners play a key role in ensuring food security, adding that importing sugar is not a long-term solution due to potential export constraints.

“… the local sugar industry urgently requires the government’s intervention by way of a price increase or even a floating price,” said MSM.

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“As essential food producers, local sugar refiners ensure food security. Imports are not a sustainable option and are restricted to export quotas from the countries, particularly India, that may (stop imports) to protect domestic needs.”

Last month, MSM urged the government to raise the ceiling price of sugar from the current RM2.85 per kg.

MSM is in a duopoly with Central Sugars Refinery (CSR) Sdn Bhd in the local sugar refining business, with MSM enjoying a 60% market share to CSR’s 40%.

On Monday, former domestic trade and consumer affairs minister Shahrir Samad suggested the government put an end to bulk subsidies for refined sugar as Malaysia was not a raw sugar producer like its neighbouring countries.

In their statement, MSM clarified that the sugar industry had not received subsidies since 2013, adding that the industry was operating in a regulated industry governed by the domestic trade and consumer affairs ministry.

“Retail sugar price in Malaysia remains as among the cheapest in the world, as gazetted under the Price Control and Anti-Profiteering Act 2011,” it said.

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The RM2.85 per kg cap has not been adjusted since 2018 and is substantially cheaper than those in neighbouring countries, it added.

The ceiling price of retail sugar has seen a net increase of only one sen since 2013. There was an 11 sen increase in 2017 to RM2.95 per kg before the price was lowered to its current RM2.85 per kg in 2018.

Sugar is a controlled item and those who sell above the ceiling price face a RM100,000 fine, three years’ jail, or both. Companies face a RM500,000 fine for their first offence. - FMT