The Sugar Crisis Is Here Krisis Gula Sudah Tiba

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 "There is no way that Malaysia can sustain the controlled price of RM2.85 per kg of sugar". 
 
 
I received the following mail from a reader Sean (thank you). It looks like the sugar crisis is already here.  This is quite self explanatory. My comments in blue at the very bottom.


Rice and Sugar as Predicted by OutSyedTheBox  :)
Dear Syed,
Good day to you and your family. Hope all are well. Just a quick update on goods purchased by us (restaurant business owners) beginning October 2023 especially on Rice and Sugar.

Our restaurant uses :-

1. Thai Fragrant rice AAA (but we notice quality has dropped since a year ago and every 50kgs bag now consists of different grains inside which make our cooking a little bit challenged ever since)

Previous price was RM230 per 50kgs bag.  (RM4.60 per kg)
Now the price has gone up to RM280 per 50kgs bag :) (RM5.60 per kg)

2. Sugar (1 carton = 24 packs of 1kg)

We used to purchase a carton of normal white coarse sugar at RM2.85/RM2.90 per kg. So before October, there isn't any problem at all for us purchasing any number of cartons of white coarse sugar and our supplier would be more than happy to supply.

But beginning October 2023
For every 1 carton of white coarse Sugar we ordered, we are told that we need to also purchased 12 packets of "(Sugar Super or premium refined sugar depending on the supplier how it is named). This so called "New Sugar" are priced at RM4.60 per kg.

So we ask our supplier(s) which is the local community grocery shop on why  this  is happening!!

Answer: the main wholesaler that supplied to them said if "you don't take the new Sugar (@ RM4.60/kg x 12) for every carton of normal white coarse sugar then we will not be able to supply the normal coarse Sugar as well.

As a business owner, I think we can still absorb the price increase but I guess it has to be fair across the board in which everyones pays the same price instead of just the business people like us. 
Just my two cents worth.

Note : attached my 2 invoices for your reference.
 



 
 My comments:
The other day I posted this table (thanks to Dato Ameer Ali Mydin). It shows the price of sugar in our neighbouring countries.
In the Philippines, which produces sugar, the price is RM8.53 per kg of sugar. In Singapore it is RM6.32 per kg while in Indonesia the price is RM4.30.

 



This is because the price of sugar in the world markets has gone up tremendously. 
 
There is no way that Malaysia can sustain the controlled price of RM2.85 per kg of sugar.
 
That is why the sugar suppliers are forcing the restaurants and retailers to buy the premium sugar for RM4.60 per kg along with the price controlled sugar at RM2.85 per kg.
They are trying to average out their higher costs. Or minimising their losses.

Your next stop : Sugar shortage.
If there is no change in the price control for sugar believe me there is going to be a sugar shortage in the country. 
Abang Mat tak lama lagi bekalan gula akan tergendala. 

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
By Syed Akbar Ali 

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