The government should increase the retail price of sugar by as much as 30 sen per kilogram to RM1.70 from its current controlled retail price of RM1.40 to RM1.45 sen per kilogramme to help alleviate the current sugar shortage.

This is the unpopular proposal from the Federation of Malaysian Consumers Associations (Fomca).

"One of the reasons for the sugar shortage is smuggling since the price of the item is so much cheaper in Malaysia than in neighbouring countries such as Indonesia, Singapore and Thailand," said Fomca director of communications Mohd Yusof Abdul Rahman.

"A higher retail price will discourage smugglers since their profit margins won't be great enough to warrant the risks involved in smuggling," he added.

According to reports, the retail price of sugar in Indonesia, Singapore and Thailand are RM2.40, RM2.05 and RM1.90 per kilogramme respectively.

But wouldn't an increase in the price of sugar, so soon after the increase in petrol prices and electricity rates, create a chain reaction of a further round of price hikes in essentials such as food items and beverages?

Reduce the use of sugar

Mohd Yusof said Fomca's view is that manufacturers of food items and beverages should reduce the use of sugar as ingredients in their products and so there shouldn't be price increases for these items.

"Fomca is in common with the Ministry of Health's call for less use of sugar in products such as carbonated beverages.

"We should also encourage less use of sugar in our diets because sugar has been attributed to being one of the chief causes of obesity and diabetes amongst Malaysians," he added.

Fomca and its member associations around the country have been receiving numerous complaints from consumers on the difficulty of purchasing sugar and the quota imposed by supermarkets on individual purchases.

"Some retailers and supermarkets are imposing a 2kg limit per purchase, but for those engaging in business such as selling traditional cakes and drinks, they can't get by on the one or two kilogramme limit that many shops impose," Mohd Yusof said.

Disappointed with ministry

"We are disappointed with the Ministry of Domestic Trade and Consumer Affairs that this shortage has been going on since April and until now there has been no solution to the problem," he added.

He said the ministry did not view the shortage as a serious problem initially, even though sugar is an essential item and is a product that falls under Akta Kawalan Bekalan 1961 which guarantees availability and Akta Kawalan Harga 1946 which determines the ceiling price.

"So the government needs to do its utmost to ensure supply and price because consumers and businesses are being badly hit by the shortage.

"We are monitoring the situation through our affiliates, other consumer associations and from the public as well and report the situation on the ground to the ministry.

"There have been times when the ministry had directed supplies after being alerted of the non availability of sugar in a particular area, and although we are grateful for the effort, Fomca is not happy with this long drawn out shortage," he added.

The ministry has also pointed the finger at wholesalers and retailers who hoard sugar in anticipation of a price increase - in view of the high raw sugar prices in the open market - as a chief cause of the shortage.

"Although the ministry is putting in the efforts to act against errant wholesalers and retailers, monitoring and enforcement still needs to be better, because we don't want them to profit if the government does increase the price of sugar in the near future.

"Now even consumers are hoarding, afraid that there won't be sugar for the festive season, and this has compounded the problem," Mohd Yusof said.

Part 1: Sugar shortage: End monopoly by 'kings'

Tomorrow: Get tough with hoarders and smugglers