Tanya Sama Najib! WHY int'l sugar price going DOWN but in M'sia, it is going UP?

Friday, 8 November 2013

According to Institut Rakyat executive director Azrul Azwar Ahmad Tajudin, it was inappropriate for the government to say that it could not afford to subsidise sugar when international sugar price is facing a downtrend.

Citing international finance portal Futures in its September edition, Azrul said the increase production of sugar in Brazil, India and Thailand and the reduction in demand for sugar in international market had pulled down the commodity price.

Azrul said the price for sugar is based on the price stated in the contracts that the country had signed.

Earlier, DAP Petaling Jaya Utara MP Tony Pua had revealed the actual reason for the total removal of sugar subsidy as announced in Budget 2014.

He said it had nothing to do with diabetes as claimed by Prime Minister Najib Razak; but it was due to a contract the government signed with sugar importers at an exorbitant price of US$26 per 100lbs for three years, way above current market price of US$18.91 per 100lbs in October 2013.

On that, Azrul blamed it on BN government saying it had failed to prepare adequate experts to monitor the market and consultants before signing the contract.

“When the sugar price goes down, Malaysia has no choice,” he said, referring to the three years contract signed by Malaysia government as announced by former Domestic Trade, Co-operatives and Consumerism Minister Ismail Sabri in January 2012.



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