Sugar supply disruption due to spike in prices in international market, says Armizan

PITAS: Acting Domestic Trade and Consumer Affairs Minister Datuk Armizan Mohd Ali said the disruption of the sugar supply in Sabah and several areas in the country is partly due to the spike in raw sugar prices in the international market.

To address this issue, he said the government has granted approved permits (AP) to 43 companies to import 557,080 tonnes of sugar to ensure there is a stable supply for the people. Still, until last Thursday (Nov 9), only 22,547 tonnes or 4.05% could be imported.

He said raw sugar costs have increased by 52%, which has also resulted in an increase in production costs for local manufacturers. Still, despite this, the price of sugar is being controlled by the government.

"To avoid continuous losses, (local manufacturers) reduced production, causing a shortage in the local sugar supply, they appealed for a price increase. But the government has not decided. We are studying the international sugar price forecasts, which are expected to rise.

"So our approach since the beginning of this year has been to open up import APs. Unfortunately, the amount of sugar being imported is low. The issue, again, is that they cannot import sugar because of the high international prices."

Armizan, who is also the Minister in the Prime Minister's Department (Sabah, Sarawak Affairs, and Special Functions), said this after officiating at the groundbreaking ceremony of the Permanent Evacuation Centre (PPKB) for the Pitas district and checking on the Rahmah Sales programme on Sunday (Nov 12).

Armizan said he had received complaints about sugar supply disruptions, especially those controlled at RM2.85 per kilogramme in the Sabah market and other states. He added that it was important to consider the level of sugar supply rather than just the price when solving the issue.

"The government is considering long-term measures related to sugar supply because its responsibility is not only to ensure that the sugar price is reasonable, low, and controlled but also to ensure stability in supply.

"If we control prices at low levels, but the supply is insufficient, that will also be a problem for the people, so we need to take appropriate considerations. The issue is indeed the high price of sugar in the international market that we have been facing since 2021," he said.

He dismissed claims that certain parties are monopolising the sugar supply as the government had earlier given import APs for the commodity to 43 companies, and the average price of sugar import is between RM3,400 and RM3,500 per tonne.- Bernama