Sugar price hike coming soon?
According to the financial media The Edge, the government may announce an increase in the ceiling price of sugar in the near future, according to information from the Malaysian Sugar Mills. Currently, the Malaysian Sugar Mills and Central Sugar Mills are negotiating with the Ministry of Trade and Consumer Affairs, Ministry of Trade and Industry, Ministry of Finance and the Economic Planning Unit to raise the ceiling price of sugar.
Currently, there are only 2 sugar companies in the country, namely the Malaysian Sugar Mills (MSM) and Central Sugars Refinery Sdn Bhd.
The chief executive officer of the Malaysian Sugar Factory said the increase in the top price of sugar would have less impact on consumers as each household uses an average of one to two months for a 1kg packet of sugar. Assuming a 50 sen per kilogram sugar hike, the impact of the price increase will be spread over 1 to 2 months.
Malaysian Sugar Mills also pointed out that raw sugar, gas and freight costs are all rising, and the weakening of the Malaysian dollar has added to the cost pressures on sugar mills. The company is actively taking several measures to reduce the impact of rising production costs.
The current price of a 1kg pack of crude sugar is RM2.85, while the price of a 1kg pack of fine sugar is RM2.95. The government previously adjusted the price of white sugar in 2017 and 2018.
