Sugar subsidy reduced by 20 sen per kg

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KUALA LUMPUR: The subsidy on sugar will be reduced by 20 sen per kilogramme effective today, Prime Minister Datuk Seri Najib Tun Razak announced yesterday.

When tabling the 2013 budget in the Dewan Rakyat, Najib said subsidy reduction had the support of consumers’ associations and health practitioners.

I want to stress that the government is still subsidising 34 sen per kilogramme on sugar involving an expenditure of RM278 million,” he said when unveiling the budget proposals on the theme ‘Prospering the Nation, Enhancing Well-being of the Rakyat: A Promise Fulfilled’.

The prime minister said the decision to reduce the subsidy on sugar was made as about 2.6 million people in the country were diabetics.

The price of sugar, a controlled item, had gone up four times, that is by 20 sen per kilogramme on Jan 1, 2010, by 25 sen per kilogramme on July 18, 2010, by 20 sen per kilogramme on Dec 4, 2010, and by 20 sen per kilogramme on May 10, 2011, bringing the retail price per kilogramme to RM2.30 now.

The increase had been necessitated by factors beyond the government’s control, such as climate change, natural disasters in producing countries and global market price.

Najib said it was hoped that the business community would not burden the people by increasing the price of sugar, but instead reduce the content of sugar in food and beverages.

Moderate intake of sugar is acceptable. However, if taken excessively, it may be harmful,” he said.

Meanwhile, the prime minister also announced an allocation of RM1.5 billion to stabilise the prices of cooking oil in the market.

He said the allocation was to maintain the increasing price differential and consumption quota on cooking oil. — Bernama