KUALA LUMPUR: The nation's sugar industry will 'crash' if its current price structure is not reviewed, says Fuziah Salleh.
KUALA LUMPUR: The nation's sugar industry will"crash" if its current price structure is not reviewed, says Fuziah Salleh.
She explained that the country's two largest sugar producers – MSM Malaysia Holdings Bhd and Central Sugars Refinery Sdn Bhd – had to import 100% of raw sugar. "Raw sugar makes up 80% of the production cost for local sugar manufacturers and operational cost is 10%.Owing to the cost pressure on the two manufacturers, she said the government allowed the production of premium sugar in May as a form of cross-subsidy for them to stay afloat.
Fuziah was responding to a question by Datuk Rosol Wahid who said that the previous Perikatan Nasional administration took measures to ensure the price of sugar did not increase.
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