Sugar will cost 20 sen more per kilogramme from today, with the new price being RM1.65 in the peninsula and RM1.75 in Sabah and Sarawak.
Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Mohd Zain Mohd Dom, who made the announcement yesterday, said the government would also withdraw its subsidy for white bread from today and remove the commodity from the price-control scheme.
He said the increase in the sugar price was necessitated by the rise in the price of raw sugar in the world market and that the government still subsidised the price at 80 sen per kg at a cost of RM1.008 billion a year.
"The subsidy on sugar is retained and the amount is much higher than the subsidy last year, which was RM720 million. However, as the world price of raw sugar has risen sharply, especially since August, from US$0.14 (0.47 sen) to US$0.16 per pound to US$0.27, the government has to raise the price of sugar."
Otherwise, Zain said, the government subsidy would rise to RM1.26 billion this year, based on the country's estimated consumption of 1.26 million tonnes of sugar next year.
He said the new sugar price, was relatively low compared with prices in other Asean countries such as Thailand (RM2.50 per kg), Singapore (RM3.05), Indonesia (RM3.40) and the Philippines (RM3.62).
Zain said an analysis by the ministry indicated that the impact of the price increase on sugar-based products was minimal, about one sen for canned drinks and a cup of tea.
"For canned drinks of 325ml with an estimated sugar content of 39g and a cup of tea with an estimated sugar content of 40g, the impact on the price of the two drinks is 0.8 sen.
"The highest impact is on condensed milk.
"For the 505g can with an estimated sugar content of 228g, the impact on the price is 4.6 sen, which is less than five sen."
Zain said that the ministry would soon hold discussions with the relevant associations to advise them against raising the prices of sugar-based products because the impact on their prices was minimal.
"Enforcement and price monitoring officers will go down to the ground to check on the prices of sugar-based products and advise against too high a raise in prices, if such was the case."
On white bread, he said traders could raise the price of the commodity from today based on their consideration. -- Bernama
Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Mohd Zain Mohd Dom, who made the announcement yesterday, said the government would also withdraw its subsidy for white bread from today and remove the commodity from the price-control scheme.
He said the increase in the sugar price was necessitated by the rise in the price of raw sugar in the world market and that the government still subsidised the price at 80 sen per kg at a cost of RM1.008 billion a year.
"The subsidy on sugar is retained and the amount is much higher than the subsidy last year, which was RM720 million. However, as the world price of raw sugar has risen sharply, especially since August, from US$0.14 (0.47 sen) to US$0.16 per pound to US$0.27, the government has to raise the price of sugar."
Otherwise, Zain said, the government subsidy would rise to RM1.26 billion this year, based on the country's estimated consumption of 1.26 million tonnes of sugar next year.
He said the new sugar price, was relatively low compared with prices in other Asean countries such as Thailand (RM2.50 per kg), Singapore (RM3.05), Indonesia (RM3.40) and the Philippines (RM3.62).
Zain said an analysis by the ministry indicated that the impact of the price increase on sugar-based products was minimal, about one sen for canned drinks and a cup of tea.
"For canned drinks of 325ml with an estimated sugar content of 39g and a cup of tea with an estimated sugar content of 40g, the impact on the price of the two drinks is 0.8 sen.
"The highest impact is on condensed milk.
"For the 505g can with an estimated sugar content of 228g, the impact on the price is 4.6 sen, which is less than five sen."
Zain said that the ministry would soon hold discussions with the relevant associations to advise them against raising the prices of sugar-based products because the impact on their prices was minimal.
"Enforcement and price monitoring officers will go down to the ground to check on the prices of sugar-based products and advise against too high a raise in prices, if such was the case."
On white bread, he said traders could raise the price of the commodity from today based on their consideration. -- Bernama
