Govt Has No Intention To Abolish APs For Sugar, Rice

December 07, 2009

KUALA LUMPUR, Dec 7 (Bernama) -- The government does not intent to do away with giving approved permits (APs) for sugar and rice importation as it will only expose the prices to speculation and fluctuations in the international market.

International Trade and Industry Deputy Minister Datuk Jacob Dungau Sagan said the government, however, would continue to monitor and review the policy and implementation of the existing AP system if it was beneficial for the people in the long term.

"The government is responsible for ensuring that the prices of essential consumer goods are always at a reasonable level and not burdening the people," he said in reply to a question from Datuk Ismail Kassim (BN-Arau) in the Dewan Rakyat today.

Sagan said the existing import system for essential goods should not be seen as a monopoly to benefit certain parties only as the government had a mechansim to intervene if there were elements of consumer exploitation.

"The current policy is actually aimed at ensuring that the government has control over the supply and prices of the commodities, besides encouraging local refining of raw sugar for added value."

Sagan said at present APs to import raw sugar were only given to four sugar refineries.

To ensure raw sugar could be obtained at a low price, these companies had signed long-term contracts with the foreign suppliers, he said, adding that their utilisation capacity was at 60 to 65 per cent per year.

Sagan said if the importation of raw sugar was left open, it would affect the production capacity of these local refineries.

"The price of sugar in Malaysia is the lowest compared to that of other countries, including the neighbouring countries.

"If sugar import is not controlled by the government, it is feared that the importers will not bring in the sugar when the price is high in the international market."

He said insufficient and erratic supply of sugar in the local market would create problems for the food manufacturing industry, restaurants and other eateries, and the people.

-- BERNAMA