The University Malaysia Sarawak (Unimas) Resource Science and Technology Faculty's pilot project to utilise sago starch as an alternative substance for sugar production is expected to produce one tonne of sugar per day by Christmas this year.
Professor Dr Kopli Bujang, head of the faculty's research team, is confident that big companies would be keen to develop sago starch as a new source of commercial sugar once more pharmaceutical analysis is conducted.
KUALA LUMPUR: Admuda Sdn Bhd has signed an MOU with CGS International (Chongqing) Co Ltd to build a RM160mil sugar refinery plant in Kuching.
Admuda director Datuk Raja Sulaiman Raja Sharif said the new plant would be the first sugar refinery in Sarawak to cater to sugar demand in Sabah and Sarawak.
Proposals in the Doha trade deal under negotiation are unlikely to open up the sugar market much as the European Union, the United States and Japan will use waivers to avoid big tariff cuts, a study issued on Monday said.
The proposals would force the European Union in particular to cut domestic prices and production, and would push up world prices by reducing the output of small, high-cost producers like Fiji and Mauritius, said the study issued by the International Centre for Trade and Sustainable Development (ICTSD).
"Despite the fact that consumers will face a higher world price for sugar, they benefit from the reduction in the cost of supporting the domestic sugar industry," according to the study, by Amani Elobeid of the Food and Agricultural Policy Research Institute at Iowa State University.
Under current proposals drafted in December last year, the European Union, the United States and Japan would cut tariffs on sugar by 70 percent, while most developing countries would cut them by 36 percent, the study notes.
This would push up the world sugar price by 1 percent as imports increase in response to lower duties. But as other countries respond to the higher price by curbing imports there is only a 0.7 percent increase in trade in sugar, it said.
World sugar production in 2008/09 was 158.55 million tonnes, while net trade -- total exports less total imports -- was 33.96 million.
However the big sugar importers and producers are likely to declare sugar a "sensitive product", allowing them to avoid tariff cuts in return for letting in a quota at low duties.
The European Union could raise its quota by 700,000 tonnes to 2 million tonnes, while the United States would increase its quota by less than 300,000 tonnes to 1.4 million.
These quota expansions, linked to domestic consumption, would represent only 3 percent of world trade, the study says.
Thailand, Malaysia and South Africa would have to expand their quotas most, while China, Venezuela and the United States would make the smallest expansions.
Other proposals would cap domestic subsidies at 5.9 billion euros for the EU and $1.1 billion for the United States.
The planned elimination of export subsidies may force the EU, already a net importer, to cut domestic sugar prices and production, the study said.
Trade liberalisation is likely to hurt small high-cost producers like Barbados, Fiji, Guyana, Jamaica and Mauritius, which have traditionally exported to the EU under preferential arrangements.
"Natural" producers like Brazil -- the world's biggest sugar exporter with 60 percent of world trade -- Australia and Thailand will benefit most from trade opening, it said.
source: forexyard
SURABAYA: Sugar distributors in East Java are accused of not being serious in answering the provincial administration's call to provide cheap sugar for low-income families in the province, prompting Governor Soekarwo to call for a meeting.
Representatives from 10 sugar distributors attended the meeting on Monday to discuss the planned cheap sugar program, which can only be realized with support from both the sugar distributors and companies. While admitting the program could cause the sugar industry financial losses, Soekarwo said the administration had to interfere to prevent further problems, as sugar prices had drastically increased from the previous Rp 6,800 (60 US cents) to the current Rp 10,000.
The provincial assistant for economic development, Chairul Djaelani, said the administration and sugar distributors would allocate 21,000 tons of sugar for the program, but so far only 700 tons had been committed. After long discussion, some agreed to allocate low-price sugar for low-income families, including PT Perusahaan Negara (PTPN) X that committed to 100 tons of sugar, PTPN XI 500 tons and PT PG Rajawali I 50 tons.
Source:thejakartapost
There has been shortage of sugar supply at small sundry and grocery shops in the outskirts of Selangor the past two weeks.
Consumers in Sekinchan, Tanjong Karang and Kuala Selangor were saying that retailers are claiming that they could not get the commodity.
Rahim Md Sherif, 19, of Tanjong Karang went from one shop to another looking for sugar but to no avail.
He had to call his sibling, who lived in Klang and Kuala Lumpur, to buy small packs of sugar.
Another complainant, who declined to be named, said it was difficult to cook and even make drinks for her schoolgoing children as she had been out of sugar for the past few days.
She said she really hoped that the situation would improve during fasting month and Hari Raya Aidilfitri.
A check by The Star at several sundry and grocery shops in Kuala Selangor, Tanjong Karang and its vicinity areas and even some areas in Damansara showed the lack of the commodity.
When asked to comment about the situation, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri said there was a possibility of sugar smuggling because price of sugar in the country was much lower than that of other countries.
“We don’t know how far it’s true, but we are investigating. We fear that there is a possibility sugar smuggling is happening, but the issue raising or reducing the sugar quota does not arise,” he told reporters after opening D’ Tandoori restaurant at Damansara Utama here
“Those who want to hoard sugar with the hope that we will raise the price of sugar, forget it. No way! The issue of sugar price hike will not arise until the end of the year. The price will remain.”
He warned that relevant authorities would come down hard on sugar smugglers and hoarders to ensure sufficient supply of the commodity during fasting month.
Asked whether the ministry would step up enforcement to check hoarding and smuggling incidents, Ismail said he would hold a meeting with the sugar industry players, police, customs and anti-smuggling unit today (Monday) to thrash out possible measures to ensure sufficient sugar supply.
“If they are caught smuggling, police and customs will get tough with them. Tomorrow we will discuss with relevant agencies and get views directly from sugar industry players to resolve the problem.”
“If there are hoarding and smuggling, the Government will not compromise because we will act against acts that difficulties to the public.”
On the trend of shortage of sugar during festive seasons, he said hoarders should not assume that by reducing sugar supply, its price would increase because sugar was a controlled item.
“We will also act on those who increase prices of controlled items,” he said adding that he would like to reiterate his assurance on Friday that the current price would remain until year end in view of rising world sugar price lately.
Asked whether industry players should increase sugar production, he said if production were increased, but smuggling continued, it would not resolve the problem.
“If sugar is smuggled out of the country and we increase production, the Government will end up giving more subsidy, which will only profit others. We suffer from losses. There’s no point to it.”
source: thestar
The Department of Science and Technology (DoST) has developed standards for muscovado sugar production that would ensure a steady export market in Asia, Europe and North America.
DoST's Industrial Technology Development Institute (ITDI) has standardized the local muscovado production process to ensure the quality of muscovado sugar being exported abroad.
ITDI experts said the standards developed started from the cutting of the stalk, harvesting, up to the production of muscovado sugar. They said standards include the need for processing control to eradicate dirt; following good manufacturing practices (GMP) covering personnel, buildings and facilities, equipment and utensils, water supply, and processes. Sugar canes should also be milled within 16 hours to avoid contamination.
ITDI came up with standards for muscovado sugar production after survey revealed that most muscovado milers do not meet international requirements, particularly the limited volume, high moisture content, high microbial load, color inconsistency, and short shelf life.
ITDI also introduced modern processing as traditional processing of muscovado sugar is 50 percent less efficient.
Premium muscovado sugar is golden brown to dark brown in color. It contains 1.5 to 3.5 percent moisture content and has a shelf life of at least nine months to four years.
Compared to white sugar's four calories per gram (cal/g), muscovado sugar or unrefined cane sugar is healthier as it only contains 2.75 cal/g. It also contains 187 grams of calcium, 56 grams of phosphorus, 4.8 grams of iron, 757 grams of potassium, and 97 grams of sodium. It is in demand in countries like Japan, Germany, Italy, France, South Korea, USA, Malaysia, Kingdom of Saudi Arabia, Canada, Australia, the Netherlands, Northern Ireland, Switzerland, and United Kingdom.
ITDI's standardization of muscovado sugar production was done in partnership with sister agency Philippine Council for Industry and Energy Research and Development (PCIERD), particularly on production process, cleaner production technologies, and promotions and awareness programs.
Muscovado exports jumped from 405 metric tons (MT) in 1997 to 1,186 MT in 2006. Antique province alone ships out some 150 MT of muscovado sugar every year.
source: mb.com
Tawau: The District Consumers Association of Sabah/Labuan (Cash) Chief Sylvester Sakim Taing said consumers should immediately alert the Ministry of Domestic Trade and Industry if traders were known to have resorted to indiscriminate hikes of sugar prices.
So far, there had been no reports of indiscriminate hikes, he said, while expressing his concern that the traders might capitalise on the flash floods to increase the prices of essential goods, particularly sugar.
He claimed that there had been panic buying of sugar in the peninsular following allegations of traders hoarding their sugar stock.
On another note, Sylvester urged the Government against allowing a hike in fares by public transport operators by 30 per cent.
The current fares should be enough for them (operators) to survive, without overburdening the people, he said.
GEORGETOWN, Guyana (GINA): Reduced demand, price cuts and climate change have taken their toll on sugar industries around the world so much so that approximately four million tonnes of sugar will be undersupplied by the world market and many countries that are large producers of sugar will be importing sugar for their own use.
Among the countries affected are the Dominican Republic, Jamaica, Barbados, Trinidad, Australia, Pakistan, India and Guyana.
Agriculture Minister Robert Persaud speaking at the launching of a project to aid rural communities recently said some of the problems faced by Guyana were shared by other nations and that the move to import was only temporary.
This statement came in light of a recent decision by the Government of Guyana to import sugar even though it was produced in the country since the Guyana Sugar Corporation (GuySuCo) was committed to supplying its existing markets.
Persaud highlighted that the entire sugar industry was devastated in Fiji since it experienced a similar rainy season.
Recently Australia, the world’s second largest sugar exporter, suffered tremendous losses as a result of flooding. Ron Mullins, Deputy Chief Executive Officer of the Industry Group Cane growers said that the impact on the 2009 sugar cane crop is unknown until a survey is carried out on the post-flooded cane fields.
The Queensland government has declared a natural disaster in 35 counties and estimates losses at A$109 million. Queensland produces 95 percent of Australia’s sugar. The government is also considering putting preparatory measures in place for the May / June rains.
Last week, Nick Jackson, GuySuCo’s Chief Executive Officer, had noted that the 2005 floods had a severe impact on the sugar industry since many fields were flooded. This in effect, has caused the corporation to register a deficit since it is still recovering from the effects of the devastating floods.
In Islamabad, the Economic Coordination Committee of the Cabinet directed the Trading Corporation of Pakistan (TCP) on Tuesday to import 200,000 tonnes of refined sugar to stabilize prices in the market.
In Jamaica, on February 2, Prime Minister Bruce Golding noted that the government’s plan to sell five state-owned sugar estates to a Brazilian sugar and ethanol producer had fizzled due to a lack of financing. The Jamaican sugar industry has suffered a JA$4 billion deficit and new options by the government were being looked at.
In New Delhi, India, two state-run firms have moved to import around 22,000 tonnes of raw sugar by next month.
According to a Reuters report of January 28, 2009, the world supply/demand deficit for sugar is expected to widen to five million tonnes in 2009/10 (mostly Oct-Sept) from 3.75 million tonnes in 2008/09.
KUALA LANGAT, Jan 29 (Bernama) -- The Domestic Trade and Consumer Affairs Ministry is still studying the impact of a sugar price increase on consumers, its Minister Datuk Shahrir Abdul Samad said.
The ministry has previously announced the possibility of an increase in the price of sugar following the hike in the commodity's price in the global market.
"We will decide whether in the end we should continue to subsidise the price of sugar or otherwise," he told reporters after opening a seminar on food packaging and processing in Teluk Datuk today.
In the meantime, he said, Malaysians should reduce sugar intake in their daily diet.
Malaysia imports 90 per cent of its sugar supply.
At the event Shahrir also witnessed the signing of a memorandum of understanding (MoU) between the Bumiputera Manufacturers and Service Industry Association of Malaysia and GCH Retail (M) Sdn Bhd, the operator of the Giant hypermarket.
The MoU was for the setting up of a small-and-medium enterprise (SME) corner at the Giant hypermart in Shah Alam.
On the setting up of the SME Corner, Shahrir said, it was in line with the ministry's effort to promote local products.
Meanwhile Retail Director of GCH Retail, Ian Crudas said, the SME Corner would be set up as a pilot project at the Giant's Shah Alam outlet within the next couple of weeks.
There would be no limit to the types of products that could be displayed there, he said.
The association's deputy president Maj (Rtd) Abdul Rahman Ibrahim said the association would station its members to help promote products at the SME Corner.
-- BERNAMA
LONDON, Dec 24 (Reuters) - The global economic crisis is set to curtail the expansion of the sugar market with many Brazilian mills struggling to repay debts, merchant Czarnikow said on Wednesday. "The global financial crisis has had a clear short-term impact on the market, but in the longer-run the lack of funding will curtail the pace of expansion," Czarnikow said in a monthly market report.
Czarnikow said the flow of investment funds into and out of the market this year had been directly at odds with sugar fundamentals.
An investor-induced rally at the start of the year was followed by a large scale liquidation during the fourth quarter triggered by dramatic reversal in global economic and investor fortunes, the report said.
Sugar's supply/demand balance has, in contrast, tightened with Czarnikow earlier this month revising up its forecast for the 2008/09 global sugar deficit to 5.8 million tonnes from a previous prediction in August of 3.3 million. [ID:nL3553507].
"Looking towards Brazil, it is clear that the sector has been the victim of initial enthusiasm, and more recently fear," Czarnikow said.
"Many (Brazilian) mills are today in a poor financial state because of insufficient funding given the pace of recent expansion which was debt financed," the report said.
Czarnikow said the strong end to this season's Brazilian crop was being driven by the need for mills to generate revenue with the high cost of servicing debt and the recent volatility in the real damaging profitability.
The report said the unexpected volatility in prices this year had coincided with a carefully planned decline in European Union production and rise of a global refining industry dependent on Brazilian sugar.
"It consequently seems that price volatility in 2008 will have on-going repercussions for sugar market fundamentals," the report said.
PUTRAJAYA: Sugar prices will go up by at least 10 sen from next month.
Sources said although globally the price of the commodity had seen a decline, the increase is unavoidable as the government was bound to honour the lock-in contract it signed not too long ago.
"The agreement was made when prices were high," he said.
Under the pricing mechanism, the price of the commodity, which the government controls, would also be streamlined with that of Sabah and Sarawak.
"That means when the price increases one step in Sabah and Sarawak, the prices will be increased two steps in the peninsula to match theirs."
Currently the retail price for sugar in Sabah and Sarawak is RM1.55 per kg, while it is 10 sen cheaper in the Peninsular.
Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad confirmed that there might be a price increase.
However, he guaranteed that prices of the rest of the controlled items including liquefied petroleum gas, flour, bread and cooking oil would not be increased, "at least as for as long as he remains the minister".
Speaking at a press conference here, Shahrir also did not discount the possibility of the ceiling prices of goods controlled by the government being reduced further considering the lower costs borne by manufacturers currently.
Speaking after his post-cabinet meeting, Shahrir also hinted that fuel prices would be reduced further at the end of the month due to the downward trend in world crude oil prices.
Decisions on changes in fuel prices, he said, would be done periodically as the matter no longer needed to be brought before the cabinet.
The price slash on Wednesday he said, was only partly done, as otherwise there would have been problems at the distribution level (petrol station owners).
The government, Shahrir explained, cannot bring down the prices drastically as it could have adverse effects in the supply chain.
The world crude oil price dropped to US$69.85 (RM246) a barrel yesterday compared with US$77.70 a barrel on Oct 12.
Since August, pump prices have been reduced three times -- on Aug 23, Sept 24 and the latest on Wednesday -- bringing fuel prices now to RM2.30 (RON97), RM2.20 (RON92) and diesel RM2.20 per litre.
On another matter, Shahrir said a meeting would be held next month with manufacturers, retailers, consumer groups, the service industry and food production industry to discuss the list of goods whose prices should be reduced.
This, he said, was following the downward global trend in commodity prices after the slide in crude oil prices.
The meeting, he said, would focus on efforts to slash prices of essential good as they should be cheaper now that their cost had been reduced due to cheaper fuel prices.
"We want to hear from them the reasons why they cannot cut back prices.
"We will then decide what to do with them and also hear out what consumer associations think should be done."
He said the ministry was also interested in hearing from associations on what they thought were items essential to consumers apart from those on the controlled list.
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