SUGAR is likely to be the next foodstuff to become more expensive as consumers grapple with rising costs all round.

A price increase from the current ceiling of RM2.69/kg will have a knock-on effect on other goods, as sugar is used in the production of many other food items, people in the food and beverage industry said.

F&B players told The Malaysian Insight they are bracing for the price hike but do not know when it will happen.

The country’s major sugar producers have been in talks with the government on raising the ceiling price, citing inflation and higher input costs.

Perak Sundry Shops Guild president Chuah Seong Kok said that the price of flour has already been raised, and a higher sugar price will have a big impact.

“Although some people think that sugar is unhealthy, it is inseparable from many daily items.”

Chuah said he understood if the government is very concerned about raising the price of refined sugar, for fear of triggering another wave of inflation.

“However, we also understand that everything is expensive now, plus the new minimum wage, and the prices of original products such as paper boxes and paper bags have all gone up.

“It seems unreasonable to not allow the price of sugar to rise too.”

Sugar producer MSM Malaysia Holdings Bhd group CEO Syed Feizal Syed Mohammad was reported saying that all input production costs combine have increased by 20%.

While no quantum to the ceiling price has been confirmed, other reports have speculated a 30%, or 80 sen, increase to RM3.49 for refined sugar.

Negri Sembilan Sundry Goods Merchants Association president Choong Chu Hai said he worried about consumers and his business, and hoped raising the ceiling price would be carried out in stages.

Federation of Sundry Goods Merchants Association president Hong Chee Meng said once the price of refined sugar rises, many finished products will also cost more.

“For example, soda, condensed milk, among others. Especially condensed milk, after being impacted by the price of palm oil, has gone up, and now if the price of sugar is raised, I am worried that condensed milk will cost even more.”

Malaysia-Singapore Coffee Shop Proprietors’ General Association president Wong Teu Hoon said members have been encouraged not to raise the price of drinks at coffee shops.

“The association has notified members, asking them to observe first, and to try not to raise prices.

“We don’t want to affect customers.”

He said coffee shops had already raised the price of beverages this year, and yet, raw material costs continue to increase.

“It is causing a dilemma. Therefore, for the time being, we still hope that members try to absorb the increase on their own.”

Lai Yee Kein, president of the Malaysia Bakery, Biscuit, Confectionery, Mee and Kuey Teow Merchants’ Association, said he hoped that a new ceiling price will not be too high, or food manufacturers will have no choice but to raise their prices.

“We are worried that things will continue to rise in price, and consumption will be affected,” he said. – June 11, 2022.