Retailers warn of sugar price hike if subsidy is removed

BATU PAHAT: Retailers are warning that the price of sugar may go up if there is a cut in subsidy.

The Federation of Sundry Goods Merchants Associations of Malay-sia Lean Hing Chuan said a review would help to tackle any increase in the price of sugar which would burden the people.

According to an online news in an English daily, Domestic Trade, Co-operatives and Consumerism Minister Datuk Hasan Malek said the government might slash subsidies for flour and sugar in Budget 2014.

Lean said they were worried that the government’s move to reduce subsidy for sugar would result in an increase of sugar price, which would further burden the people.

He said the global sugar price has dropped significantly.

However, local sugar is still priced at RM2.50 per kilo.

“There is no reason to increase the price of sugar.

“In fact sugar manufactures should reduce the sugar price even if the government reduces the subsidy for sugar.

“The retail price of sugar in our neighbouring countries like Thailand and Indonesia are much cheaper,” he said at Batu Pahat Retail and Dry Goods Association 28th anniversary celebration dinner here on Oct 5.

When asked for the differences of sugar prices, Lean said he was not in a position to reveal sugar prices in other countries, but hoped the ministry would study the price setting for sugar in the country.

“The consumers are already paying a high price for sugar, on top of that the government is still paying the subsidy for every kilo sold.

“Why does the government need to pay the subsidy when world sugar price is already low? It is not going to benefit the people,” he added.

Lean said sugar price should be allowed to flow freely according to the market price and freedom to import of sugar should be permitted to deal with the local sugar price.