Malaysia hikes sugar subsidy amid high Global price

The Malaysian government said Friday it had increased Sugar subsidy by more than doubled at the beginning of this month amid escalating global Sugar price.
Malaysian Domestic Trade and Consumerism Minister Ismail Sabri Yaakob said on Friday that sugar subsidy increased from 20 Sen (US$0.06), to 54 Sen (US$0.17).

“World prices increased tremendously. This is about keeping costs at bay. If the Sugar prices are increased, it will cost a domino effect on all food prices,” Ismail Sabri was quoted by local daily the Star as saying.

The government is expected to fork out 567-M Ringgit (US$186.54-M) for Sugar subsidy this year compared with 262.4-M Ringgit (US$86.32-M) last year.

Ismail Sabri said the subsidy hike was to avoid a Domino Effect on overall food prices and was not due to an impending election, which is speculated to be called by mid Y 2012.

Malaysia imports almost 99% of its Sugar.

Prime minister Najib Razak had promised to cut subsidy in a long term to reduce the strain on the budget.

The government had been reducing subsidies for diesel, power and Sugar gradually since Y 2011 but increased the Sugar subsidy later that year and in January.

Paul A. Ebeling, Jnr.

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Posted by Shayne Heffernan on Feb 20th, 2012and filed underAsia-Pacific Companies, Commodities, Companies, Consumer, Latest News, Sugar.You can follow any responses to this entry through theRSS 2.0Responses are currently closed, but you can trackback from your own site.