Wednesday, September 13, 2006

Mixed reaction from users on sugar price

The Government’s announcement that fine sugar will become a controlled item from today has met with mixed reaction from major users and a consumer group.

The Federation of Hawkers Associations in Penang and Seberang Prai said the move would prevent any artificial increase in the price of food and drinks.

Its president Lam Tong Yin said hawkers would not have any reason to increase the price of food as the Government was doing its best to help stabilize the price of sugar.

“Whenever sugar stock is low, the price becomes very high. Many association members have complained about the matter and we hope it will help stop any more speculation over the price of the commodity,” Lam said.

The South Johor Small Medium Industries Association, however, said controlling the price of fine sugar made no difference to food manufacturers there.

Its president Teh Kee Sin said the main concern of its members was the supply of sugar, not the price.

He said the announcement did not really mean much to them because food manufacturers could use both coarse and fine sugar.

“Once dissolved for manufacturing, both kinds of sugar are the same. Our main concern is the shortage of sugar supply,” he said.

Teh said the cost of manufacturing coarse sugar was too high and the ministry should look into this problem instead.

Federation of Malaysian Consumers Association (Fomca) secretary-general Muhammad Sha’ani Abdullah said having a three-tier price control on both course and fine sugar could work.