Sugar subsidy removal more bane than boon, say consumers

Making tea: A coffee shop worker preparing a cup to coffee in a coffee shop in Ipoh old town.

HOUSEWIFE B. Priya looked flustered as she saw the price of sugar at a grocery store in Ipoh.

The 54-year-old grandmother of three was buying supplies for the upcoming Deepavali celebration and discovered that the price of sugar had gone up 34 sen per kg after the removal of sugar subsidy in Budget 2014.

She brushed off the rationalisation that the subsidy removal would encourage people to consume less sugar and control the number of diabetics among Malaysians.

“I do not think any homemaker or restaurant operator would change their perfectly-crafted recipes just to cater to an increase in the price of sugar.

“It is a hassle to maintain the same taste loved by families and customers, so they will just bear with the price increase,” she said.

As a result of this, Priya expects the expenditure on the upcoming Deepavali celebration to be higher than last year’s.

Making adjustments: Law said he would have to revise food prices to cover the extra costs caused by the sugar price increase.

“The recipes for my festive cookies and treats were passed down from my grandmother and it does not feel right to simply change them because sugar is expensive.

“I am sure my grandchildren will also complain if there is a change in the taste of the goodies they are so used to,” she said.

Prime Minister and Finance Minister Datuk Seri Najib Tun Razak had announced during the tabling of Budget 2014 on Friday that the Government would do away with the sugar subsidy effective Saturday.

Kindergarten teacher Goh Paik Kuan, 37, criticised the move that she said would cause a chain reaction of price increase among the necessities.

“The direct price increase might only be for sugar, but sugar is consumed on a daily basis by everyone and is used in countless food products.

“It is without doubt that coffeeshops, bakeries and restaurants will use this opportunity to increase food prices, affecting people from all walks of life,” she said.

College student Lee Khang Wei, 19, who has a sweet tooth, is considering cutting down on cakes and cookies, albeit reluctantly.

“I am aware that it is not healthy to consume so much sugar, but I feel we should be given the freedom of choice instead of being forced to cut down through price increases.

“If the Government wants to lower the diabetes rate among the people, they should do so through education and awareness programmes instead,” he said.

Going up soon: Prices of drinks listed on a menu board in a restaurant near Jalan Yang Kalsom in Ipoh town. 

Perak Consumers’ Association president Abdul Rahman Said Alli said despite the sugar price hike, consumers would still buy sugar, as it was used in almost every households and food-related industries.

He said it was the same in the case of smokers, who would still buy cigarettes despite the price hike.

“This being said, I believe the abolition of subsidy on the sweet substance would not be of help to reduce the occurence of diabetes rate in the country,” he said.

Abdul Rahman also opined that the subsidy cut would cause greater financial burden to Malaysians in the long run.

Meanwhile, eatery operators interviewed by The Star expressed that they would make adjustments to the price of their food products.

Sun Yuan Foong coffeeshop owner Law Ching Hui said prices of drinks and toasts would increase following the sugar price hike.

He also expected prices of kaya, sweetened milk and bread to increase, as their production involved sugar.

“I would need to revise the prices by end of the year to average out the production cost,” he said, adding that the increase would not exceed 10 sen for a cup of drink and a set of toasts.

“I am sure patrons will complain but there is nothing much I can do, as I need to keep my business afloat,” he said.

Law said his business had relatively slowed down compared to few years ago, and he was worried that he might lose even more patrons after the price revision.

Restaurant M. Salim worker V. Panti said they would feel the pinch with the abolition of the sugar subsidy.

“Since we use sugar in a large quantity, I think it is difficult for us to absorb the price hike,” he said.

He said the restaurant spent more than RM370 to purchase about 150kg of sugar that could only last them a week.

“We feel bad for our patrons but we hope they could understand our situation,” he said.

However, Panti said it was up to his boss to decide whether to increase the price of food at the restaurant.

A bakery worker, who only wished to be known as Lam, said they had expected price hike in both flour and sugar.

“Even though we are not happy with the subsidy cut, we are relieved that the Government did not increase the price of flour,” she said.

She said the bakery would absorb the increase for the time being and adjust prices of breads and buns next year.

Lam said they would not cut down on sugar use to maintain product consistency.

“We would need to see the impact of the price hike on our monthly earnings before planning on the next move,” she said.