It is confirmed.  Consumers have been forced to pay higher sugar prices because through anti-competitive practices, only “certain” companies were allowed to import sugar.  Being able to control supply; they could easily manipulate prices.  They were selling their sugar beyond “free” market prices.  They made lots of money and the consumers were ripped of through higher sugar prices. 

Thus when the government, to some extent, liberalized the import of sugar; allowing more APs, those who were enjoying excessive manipulated prices appear to be unhappy; requesting that government restrict competition. They want to continue to enjoy higher profits by ripping of consumers through higher prices.  It is interesting that though there is a Competition Act and Competition Commission, these chosen few are blatantly seeking greater protection of the market at the expense of consumers.

Is sugar the only commodity where the favored companies enjoy protection; charge excessive prices and make exorbitant profits? Or are there fruits, vegetables, and other food products that consumers are being overcharged through price manipulation through market protectionism?

FOMCA demands the government is transparent and open of those essential food products, where consumers continue to be over-charged, because of the protection of a few favoured companies who are able to distort prices through price manipulation. 

FOMCA calls the Competition Commission to act. To investigate the food chain to ensure that throughout the supply chain, at every level, there is a free and fair market; and prices reflect the “actual” and is not distorted through protection or any form of collusion.

Without subsides, consumers should benefit from a free and open market; consumers should benefit by getting the best value for their hard earned money. When prices go up, we need to be sure that it is because of genuine supply and demand in the market and not price distortion by a small number of players who are manipulating the market.

The sugar experience clearly indicates that with market liberalization, consumers gain through lower prices.

Dato' Paul Selva Raj
CEO / Secretary General of FOMCA