Malaysia bans sugar exports

Malaysia bans sugar exports

KUALA LUMPUR (AFP): Malaysia has frozen the export of sugar indefinitely after a domestic shortage of the commodity created by profiteers, officials said Saturday.

The ban was to deal with "irresponsible" wholesalers who had refused to distribute the produce of the country's four sugar millers unless they made higher profits from the government- controlled commodity, officials said.

"In some cases, the wholesalers provided supplies at higher costs, making it difficult for retailers to sell sugar at the government-fixed price," said Domestic Trade and Consumer Affairs Minister Abu Hassan Omar, who ordered the ban.

Malaysia exported 250,927 tons of sugar last year, a 44 percent increase over the 174,296 tons shipped in 1993, officials said.

Abu Hassan said he met local sugar producers Malaysian Sugar Manufacturing Co., Central Sugars Refinery, Kilang Gula Padang Terap and Kilang Gula Felda Perlis on Thursday and decided that a temporary export ban was the best way to deal with the artificial shortage.

Abu Hassan said checks by his ministry showed there was adequate supply of sugar nationwide although some retailers howled they had run out of the item.

"We will continue making checks on business premises throughout the country to ensure there is no hoarding of sugar," Abu Hassan said, adding that the export ban would last until local supply was stabilized.

Economic adviser to the government Daim Zainuddin warned severe action against any party which tried to unilaterally raise prices of government-controlled goods.