PUTRAJAYA, Dec 31 (Bernama) – Sugar will cost 20 sen more per kg from tomorrow, with the new price being RM1.65 in the peninsula and RM1.75 in Sabah and Sarawak, it was announced Thursday.
Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Mohd Zain Mohd Dom, who made the announcement, said the government would also withdraw its subsidy on white bread from tomorrow and remove the commodity from the price control scheme.
He said the increase in the sugar price was necessitated by the rise in the price of raw sugar in the world market, and that the government still subsidised the price, at 80 sen per kg or RM1.008 billion for the year.
"The subsidy on sugar is retained and the amount is much higher than the subsidy in 2009, which was RM720 million.
“However, as the world price of raw sugar has risen high especially since August, from US$0.14 to US$0.16 per pound to US$0.27, the government has had to raise the price of sugar,” he told reporters here.