Deputy Prime Minister Najib Razak said today the cabinet has decided not to raise the price of sugar despite its currently low price and shortage on the global market.

He also warned that those hoarding the commodity would face action from the authorities.

"We have given a clear signal that the price of sugar cannot and will not be increased and those who hoard sugar will face action by the enforcement authorities," he said after a press briefing on the upcoming 10th Defence Services Asia Exhibition and Conference (DSA 2006).

"We know that it is (presently) extremely low, but if we increase the price, people would say the government is unfair and have demonstrations," Najib added, referring to several street protests over the Feb 28 fuel price hike.

Several states are reported to be suffering from a sugar shortage but this was denied yesterday by Domestic Trade and Consumer Affairs Minister Shafie Apdal who said supply during most of the first three months of this year was higher than during the same period last year.

He also said the ministry had found eight cases of hoarding, an offence punishable under the Control and Supply Act 1961.