Ninety-nine per cent of Malaysia's sugar supply is imported to meet the domestic demand, Dewan Rakyat was told on Thursday, June 10.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the bulk of the imported sugar, 41%, was purchased from Brazil with 509,630 tonnes, followed by 447,480 tonnes from Australia (36%) and 174,000 tonnes from Thailand (14%).
He said the country also bought raw sugar from Nicaragua amounting to 99,400 tonnes (8%) and Guatemala with 12,430 tonnes (0.6%).
"Currently, local sugar production contributes to only 1% of sugar supply with 17,000 tonnes.
"The imports are necessary to ensure local sugar supply is sufficient and not affected by price fluctuations in line with the Price Control Act 1946 and the Control of Supplies Act 1961," he said in reply to Datuk Ismail Kasim (Arau-BN).
Ismail wanted to know how much sugar was imported to overcome the sugar shortage in the country and whether it affected the sugar supply.
Mustapa said that issuing more approved permits (AP) to import sugar would not lower the price of the commodity if the government did not increase the current allocation of RM1 billion.
"The world sugar prices are currently high and the APs will not necessarily lower the price of sugar. After calculating production costs, local sugar prices are based on the global market," he added.
He said sugar retailed at RM2.45 per kg in the world market, compared with the subsidised local price of RM1.65 per kg.
Mustapa said the sugar problem could be tackled by reducing subsidies in stages and ensuring that price gap between the international and domestic market is not too big.
At the same time, it would curb the smuggling of sugar out of Malaysia. — Bernama
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