PETALING JAYA: Central Sugars Refinery Sdn Bhd (CSR) has benefited from the drop in global raw sugar price, which fell to US$0.17 a pound in 2015 from US$0.19 a pound in 2014.
Its chief executive officer (CEO) Abdul Karim Md Lassim said the company spent RM750mil to import raw sugar last year compared with RM860mil in 2014.
The global raw sugar price stood at US$0.14 yesterday.
Speaking to reporters after the launch of CSR’s latest premium lower calorie sugar and new packaging designs here, today, he however said the weakening ringgit had caused the company to suffer foreign exchange losses of about RM24mil last year.
The increase in natural gas price last year had also negatively affect the margin of sugar production, he said.
As sugar is a controlled item regulated by the Government, he reassured that CSR, the largest sugar producer in the country, would absorb the increase in cost of production and would not sell the product at a price higher than the ceiling price.
Asked on the sugar market in the country, Abdul Karim said last year it grew at a slower pace of about 1% to 2% year-on-year and the growth was expected to continue moderating due to awareness campaign to consume less sugar over the years.
CSR is a wholly-owned unit of Tradewinds (M) Bhd. It produces 1,800 tonnes of sugar daily while another refinery under Tradewinds -- Gula Padang Terap Sdn Bhd in Kuala Nerang, Kedah, produces 500 tonnes of sugar a day.
On the newly launched premium lower calorie sugar, CSR deputy CEO Lim Chin Chuan said the initial output was about 20 tonnes a day, and it might increase in tandem with rising demand.
He said the company would focus on the local market first before expanding the new product to overseas market if there was demand.
The premium lower calorie sugar is Malaysia’s first lower calorie sugar. The product is an all natural blend of sugar and stevia with a unique sweetness, formulated to reduce the caloric intake from sugar while preserving the sweetness, especially for those who are health conscious.
Priced at RM7.90 per pack of 500 grammes, a teaspoon of the premium low calorie sugar is equivalent to the sweetness of two teaspoons of regular sugar. - Bernama
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