Published: Friday February 3, 2012 MYT 4:55:00 PM

Sugar subsidy increased because of locked-in price

By LOH FOON FONG

KUALA LUMPUR: The sugar subsidy has increased because the price of sugar was locked in for three years from 2009, says Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

He was refuting those questioning why the subsidy had increased when the global market price of sugar had gone down in the second half of last year.

Ismail said the price of sugar was locked in at 17.5 US cents per pound from 2009 to 2011. He said the global price increased to 28.9 US cents per pound in early 2010 and peaked at 36 cents by the end of that year.

"As far as we are concerned, we benefited from the locked-in price," he said.

In December last year, the price went down to 23 US cents, he said.

The Government signed a new agreement last month at 26 US cents per pound for the next three years, he said after launching the Menu Rakyat 1Malaysia at Bank Rakyat's cafetaria here.

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